08:29 AM EDT, 03/14/2025 (MT Newswires) -- ServiceTitan's ( TTAN ) momentum will continue after "strong" fiscal Q4 results and guidance, as its forward model remains conservative, Morgan Stanley said in a Friday note.

ServiceTitan ( TTAN ) is one of the best examples of a vertical software asset company that has relatively insulated end-markets, Morgan Stanley analysts said.

The company's fiscal Q4 gross transaction value, revenue, and platform revenue growth all accelerated and beat expectations, the analysts said. The company also delivered "solid profitability metrics" in Q4, with operating income of $6.9 million beating the $3.5 million consensus, they noted, adding that fiscal Q1 and fiscal-year 2026 guidance was also ahead of consensus.

ServiceTitan's ( TTAN ) "attractive value proposition" together with its "vertical expertise, strong innovation, and proprietary data and AI capabilities" all factor in to maintain its "competitive moat," the analysts said.

Morgan Stanley reiterated an equal-weight on the stock and increased the price target to $107 from $104.

Shares were almost 8% higher in recent premarket activity.