Joshua Reilly, an analyst from Needham, maintained the Buy rating on Tyler Technologies (TYL – Research Report). The associated price target was raised to $750.00.
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Joshua Reilly has given his Buy rating due to a combination of factors such as Tyler Technologies’ strong performance in the fourth quarter and promising future projections. The company’s subscription revenue exceeded expectations, and the fiscal year 2025 guidance suggests a better-than-anticipated improvement in profit margins.
Additionally, the management’s commentary highlighted a key revenue source from a low-margin payments contract with the state of Texas, which is expected to conclude in August, potentially removing a revenue headwind in FY25. This shift is likely to enhance the mix of high-margin revenue, contributing to an operating margin that surpasses previous forecasts. Moreover, the free cash flow margin projection for FY25 is higher than prior expectations, further supporting the positive outlook on the stock.
According to TipRanks, Reilly is a 4-star analyst with an average return of 9.7% and a 50.51% success rate. Reilly covers the Technology sector, focusing on stocks such as Verint Systems, Tyler Technologies, and Paycom.