AnalystConsensusTarget updated the narrative for TYL

Tyler Technologies’ analyst price target was recently revised downward by analysts, decreasing from approximately $678.78 to $664.06. Analysts noted concerns around software-as-a-service growth and a lower terminal multiple, despite continued strong fundamentals and a recent guidance raise.

Analyst Commentary

Recent analyst updates on Tyler Technologies have provided a nuanced view on the company's valuation and growth prospects. While price targets have shifted, researchers continue to assess both supportive and cautionary elements within Tyler’s business outlook.

Bullish Takeaways

• Bullish analysts have highlighted Tyler Technologies’ attractive valuation, designating the company as a notable pick among its peers.
• The company has consistently outperformed earnings expectations, including a recent quarterly beat.
• Updates to guidance, particularly the raising of the low end of full-year expectations, have been positively received as a sign of management’s confidence in continued execution.
• Some project that future commentary, especially regarding fiscal 2026, may alleviate current concerns and offer further clarity on the longer-term growth trajectory.

Bearish Takeaways

• Bearish analysts have expressed concerns about the pace of software-as-a-service growth, which may pressure Tyler’s valuation premiums.
• Recent downward revisions in price targets reflect a more conservative outlook, stemming from uncertainty about future growth dynamics.
• A lower terminal multiple has been applied in some valuation frameworks, contributing to target cuts even after strong near-term performance.
• There is lingering caution surrounding how sustained growth rates may affect investor sentiment and Tyler’s premium positioning within the sector.

What's in the News

• Tyler Technologies completed the repurchase of 300,000 shares, amounting to $173 million, as part of its ongoing buyback program. This brings total buybacks since 2002 to over 20.8 million shares, or nearly 52% of total shares. (Key Developments)
• Tyler Technologies signed an agreement with Service Oklahoma to provide Tyler Cashiering and advanced payment analytics. The cloud solution, powered by AWS, will be rolled out at 44 locations statewide for POS and centralized revenue management. (Key Developments)
• The Fulton County Clerk of Superior and Magisterial Courts in Georgia selected Tyler’s Enterprise Records Management for land records to enhance workflow integration and public access and offer fraud alerts. (Key Developments)
• The Oklahoma Department of Labor chose Tyler’s State Regulatory Platform Suite (SRPS), including AI-driven field inspections, to modernize its licensing and regulatory enforcement systems in the cloud. (Key Developments)

Valuation Changes

• Consensus Analyst Price Target has decreased from $678.78 to $664.06, reflecting a modest downward adjustment.
• Discount Rate has risen slightly, moving from 8.47% to 8.52%.
• Revenue Growth projection has declined from 9.41% to 9.22%.
• Net Profit Margin estimate has increased from 16.33% to 16.72%.
• Future P/E Ratio has fallen notably, shifting from 79.34x to 72.89x.