Tyler Technologies downgraded to Equal Weight from Overweight at Wells Fargo

Wells Fargo analyst Michael Turrin downgraded Tyler Technologies (TYL) to Equal Weight from Overweight with a price target of $615, down from $670. The firm says the 2025 setup for software is “showing shades” of 2024, leading to questions around if the sector setting up for another first half of the year pullback or more sustained momentum. Wells’ year-end chief investment office survey suggests “incrementally healthier budget growth” in 2025 versus 2024, with 95% of respondents suggesting budget growth in 2025. The analyst expects Tyler’s relative free cash flow multiple to normalize to historical averages as the broader macro outlook improves. In addition, the company’s pace of free cash flow margin expansion will moderate, the analyst tells investors in a research note.