BTIG Taps ServiceTitan as Top SMID-Cap Pick on AI Growth Potential

Investment firm BTIG has reaffirmed ServiceTitan (TTAN) as its top stock pick in the small- and mid-cap space, highlighting the company's strategic position to leverage artificial intelligence within the home services sector. The firm maintained its "Buy" rating and a $110 price target on the software provider.

AI as a Key Growth Driver

BTIG's analysis focuses on ServiceTitan's potential to capitalize on what it terms the "AI and agentic era." The firm is particularly bullish on two of the company's AI-powered offerings: its Virtual Agents product and its Max program, which are designed to enhance operations for trades businesses.

The note suggests these initiatives are poised to become significant revenue contributors. The Max program, which was opened to new customers in the first quarter, is also seen as a catalyst for future market share gains, according to the firm.

Financial Projections and Valuation

BTIG projects a substantial revenue ramp-up from ServiceTitan's AI tools in the coming years. The firm's financial model forecasts:

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• Max Program: Contributing approximately 1% to subscription revenues in fiscal year 2027, growing to about 7% by fiscal year 2028.
• Virtual Agents: Contributing roughly 3% of usage revenues in fiscal 2027, increasing to 8% in fiscal 2028.

BTIG's $110 price target is based on a valuation of approximately 9 times the company's estimated enterprise value to calendar year 2027 sales. The firm projects ServiceTitan's total revenue will grow from $960.97 million in fiscal 2026 to $1.13 billion in fiscal 2027 and $1.31 billion in fiscal 2028.

Tapping a Large Addressable Market

ServiceTitan provides a comprehensive software platform for trades businesses that includes CRM, field service management (FSM), and enterprise resource planning (ERP) functions. According to BTIG, this core business serves a total addressable market (TAM) of $31 billion.

Beyond its core platform, the firm calculates a separate, significant opportunity for the Virtual Agents product alone, estimating its TAM at approximately $1.5 billion. This figure represents roughly seven times ServiceTitan's total usage revenue reported for fiscal year 2026, underscoring the product's growth potential.