Buy Rating for Tyler Technologies: Strong Demand, AI Adoption, and Cloud Transition Drive Growth Prospects

BTIG analyst Matthew VanVliet has reiterated their bullish stance on TYL stock, giving a Buy rating yesterday.

Matthew VanVliet has given his Buy rating due to a combination of factors including the strong demand environment, the long-term growth pipeline, and the ongoing transition benefits from cloud migration. The positive reception of new AI features by Tyler’s customers, despite the typically slow adoption of new technologies in the public sector, also supports the rating. Tyler Technologies is experiencing a change in narrative due to staffing constraints in their customer base, which is driving an increased demand for automation features.
Furthermore, the company’s ability to generate moderate earnings upside through high single-digit top-line growth is a key driver behind the recommendation. The potential for increased sales through upsell and cross-sell opportunities, the Connected Communities data layer strategy, and recent acquisitions are expected to improve sales efficiency. Moreover, the ecosystem partners’ ability to enhance and expand their businesses within the public sector due to Tyler Technologies’ offerings provides additional optimism for the company’s growth prospects. These factors collectively contribute to the Buy rating and the increased price target of $550.

VanVliet covers the Technology sector, focusing on stocks such as Sprout Social, Tyler Technologies, and Paycom. According to TipRanks, VanVliet has an average return of -9.6% and a 37.50% success rate on recommended stocks.

In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $550.00 price target.

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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.