Buy Rating Affirmed for Tyler Technologies on Strong Market Position and Growth Strategy

Robert Oliver, an analyst from Robert W. Baird, reiterated the Buy rating on Tyler Technologies (TYL – Research Report). The associated price target remains the same with $525.00.

Robert Oliver has given his Buy rating due to a combination of factors, including Tyler Technologies’ strong competitive position and the healthy spending environment for its software solutions. Tyler Technologies is recognized as a leading provider of vertical software for local governments and public sector entities, which underpins the company’s stable market demand. Oliver’s confidence is bolstered by the company’s clear strategic targets set for 2025 and 2030, as outlined during the analyst day in 2023. The firm’s robust forward-looking statements and the consistent interest from investors in Tyler Technologies signal a positive outlook for the company’s performance.

Additionally, Robert Oliver sees significant potential in Tyler Technologies’ ability to cross-sell its products, as the average customer currently utilizes around three products with the opportunity to adopt up to eight to ten. The company’s ongoing internal changes, such as adjustments in sales compensation and go-to-market strategies, are geared towards enhancing its cross-sell activity—a long-term growth driver. The migration of Tyler Technologies’ products to a cloud-efficient model also supports the positive rating, as this transition is likely to enhance customer experiences and expand the company’s market reach. Despite a premium valuation, the company’s focus on driving payment solutions into its customer base, as well as its robust subscription transition benefits, justify the Buy rating and support the company’s long-term financial objectives.

TYL’s price has also changed moderately for the past six months – from $411.340 to $489.140, which is a 18.91% increase.

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Tyler Technologies (TYL) Company Description:

Tyler Technologies, Inc. engages in the provision of integrated technology and management solutions and services for public sector with a focus on local governments. It operates through the Enterprise Software, and Appraisal and Tax segments. The Enterprise Software segment provides municipal and county governments and schools with software systems to meet their information technology and automation needs for mission-critical back-office functions such as financial management, courts, and justice processes. The Appraisal and Tax segment provides systems and software that automate the appraisal and assessment of real and personal property, as well as property appraisal outsourcing services for local governments and taxing authorities. The company was founded in 1966 and is headquartered in Plano, TX.