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Loop Capital cites outlook as reason for Tyler Tech shares target boost

EditorEmilio Ghigini
Published 05/21/2024, 07:48 AM
TYL
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On Tuesday, Loop Capital adjusted its financial outlook for Tyler Technologies (NYSE:TYL) shares, a leading provider of public sector software solutions.

The firm's price target for Tyler Tech has been increased to $530.00 from the previous figure of $485.00, while the Buy rating remains unchanged.

The revision followed Loop Capital's attendance at Tyler Technologies' annual user conference on Monday, which included an investor luncheon with the company's management.

Although no groundbreaking announcements were made, the event offered additional perspectives on the state of the public sector software market, Tyler's recent business performance, its ongoing shift to cloud-based services, and its competitive position.

Tyler Technologies is recognized as the top player in the municipal applications market. According to Loop Capital, the company is expected to sustain an organic top-line growth rate of 8-10% over the long term. Additionally, Tyler is projected to achieve approximately 100 basis points of annual margin expansion.

The confidence in Tyler Tech's business model and market leadership has been reinforced by the insights gained from the recent conference, leading to the increased price target. Loop Capital's endorsement reflects its belief in Tyler's ability to continue its growth trajectory and deliver on its financial goals.

InvestingPro Insights

In light of Loop Capital's positive outlook on Tyler Technologies (NYSE:TYL), current data from InvestingPro provides additional context for investors considering TYL's stock. With a market capitalization of $20.97 billion and a high P/E ratio of 109.95, Tyler Technologies is trading at a premium, reflecting its leadership position in the public sector software market. The company's revenue growth over the last twelve months as of Q1 2024 stands at 6.77%, indicating steady business expansion. Moreover, Tyler Technologies has seen a robust one-month price total return of 22.45%, showcasing strong recent performance in the market.

An InvestingPro Tip highlights that 13 analysts have revised their earnings upwards for the upcoming period, suggesting growing optimism about the company's financial prospects. Also, Tyler Technologies has been profitable over the last twelve months, which may provide added confidence to investors. For those interested in further insights, there are 16 additional InvestingPro Tips available, which can be explored with a subscription. To gain deeper analysis and tips on Tyler Technologies, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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