Artisan Partners, an investment management company, released its fourth-quarter 2025 investor letter for “Artisan Mid Cap Fund”.  A copy of the letter can be downloaded here. The Fund seeks to invest in companies that possess franchise characteristics, with strong earnings trajectories, and are trading at a discount to the estimated private market value. US equities ended a record year with robust fourth-quarter gains. The Fund’s Investor Class, ARTMX, delivered -0.44%, the Advisor Class, APDMX, delivered - ...

On February 17, 2026, Daventry Group, LP disclosed a buy of 80,718 shares of ServiceTitan (NASDAQ:TTAN), with the estimated transaction value at $7.88 million based on average quarterly pricing. What happened According to a filing with the Securities and Exchange Commission dated February 17, 2026, Daventry Group bought 80,718 additional shares of ServiceTitan. The estimated transaction value, based on the mean closing price in the fourth quarter of 2025, is $7.88 million. The stake’s quarter-end value i ...

Group 1 - ServiceTitan Incorporated (NASDAQ:TTAN) is recognized as one of the 12 oversold software stocks to invest in, with a recent upgrade from Morgan Stanley from Equal Weight to Overweight, raising the price target from $125 to $131, indicating a potential upside of 109% [1] - Analyst Josh Baer noted improvements in valuation and growth execution, leading to stronger confidence in the company's performance and strategy, making it Morgan Stanley's top pick in the sector, replacing Toast (TOST) [2] - Goldman Sachs analyst Adam Hotchkiss initiated coverage on ServiceTitan with a Neutral rating and a price target of $117, highlighting the company's strong position in the under-digitized trades market, which presents significant expansion opportunities [2] Group 2 - ServiceTitan operates cloud-based software platforms that integrate various business functions, including advertising, contracting, invoicing, payment processing, reporting, and recruitment, through its platforms such as ServiceTitan, FieldRoutes, Aspire, and Convex [3] - The company serves various industries, particularly focusing on HVAC businesses, plumbing, irrigation, water treatment, painting, pest control, roofing, and other related solutions [3]

Core Viewpoint - The potential threat of AI-powered alternatives does not justify downgrading all software stocks, as some companies like ServiceTitan may remain resilient amidst the "SaaSpocalypse" affecting the SaaS sector [1][2]. Industry Overview - The technology sector is experiencing a significant sell-off, particularly among well-known SaaS companies, due to fears that AI tools could disrupt the enterprise software industry [1][2]. - The iShares Expanded Tech-Software Sector ETF has declined by 20% over the past year, contrasting with a 16% increase in the Nasdaq-100 index [3]. Company Analysis: ServiceTitan - ServiceTitan, a SaaS company focused on specialized software for skilled trades, has seen its stock drop by 39% over the past year, but this decline may be exaggerated due to AI-related fears [4][6]. - The company reported a 25% year-over-year revenue growth in its fiscal 2025 third quarter, with an annual revenue run rate nearing $1 billion and a non-GAAP operating margin of 8.6%, up from 0.8% the previous year [6][7]. - Despite not being profitable yet, ServiceTitan has consistently grown its revenue and exceeded analysts' earnings per share estimates for four consecutive quarters, indicating potential undervaluation by the market [7]. Market Position - ServiceTitan operates in a niche market that is less likely to be disrupted by AI, serving industries such as HVAC, plumbing, and construction, which often lack suitable off-the-shelf software solutions [9][10]. - The company's products provide significant value by addressing everyday business challenges for its customers, suggesting a degree of insulation from AI competition [10]. AI Integration - ServiceTitan executives are optimistic about AI, mentioning its integration into their software platform, which could enhance their offerings rather than threaten them [12]. - Industry experts predict that software companies, including ServiceTitan, can leverage AI to improve their products and profitability, positioning them favorably in the evolving landscape [12]. Investment Outlook - Given its unique market position and growth potential, ServiceTitan may be a worthwhile investment for those willing to adopt a long-term perspective, as it appears set to coexist with AI rather than be replaced by it [13].

Core Insights - Morgan Stanley analysts suggest that five software stocks could potentially double in value within the next 12 months if fears surrounding AI subsist and the stocks rebound to their fair value [1] Group 1: Market Overview - Software stocks have faced significant declines this year, with the iShares Expanded Tech-software Sector ETF (IGV) losing over 20% of its value since the beginning of the year, primarily driven by concerns regarding AI's impact on the industry [1] - Major companies like Intuit, ServiceNow, and Salesforce have seen substantial drops in their stock prices due to fears that AI-native startups will pressure profit margins and reduce corporate headcounts, limiting revenue growth [1] Group 2: Investment Opportunities - Morgan Stanley identifies that some software stocks are currently trading at more than a 50% discount to their fair value, creating potential buying opportunities for investors [1] - The five software stocks highlighted by Morgan Stanley include large caps Intuit and Salesforce, which have potential upsides of 101% and 109% respectively from their recent closing prices [1] - Mid-cap stocks such as ServiceTitan, CCC Intelligent Solutions, and Vertex are also expected to more than double in value according to the analysts [1] Group 3: Market Sentiment and Future Outlook - The uncertainty surrounding AI's development has led to volatility in the stock market, but historical trends show that investors have often rebounded from such concerns, driving stock prices higher [1] - Experts, including Nvidia's CEO, have expressed skepticism about the notion that AI will severely disrupt the software industry, suggesting that nimble software providers could leverage AI to their advantage [1] - The market for tech stocks is expected to remain turbulent as uncertainty continues to loom over the software sector, with Morgan Stanley indicating that disruption-related volatility is likely to persist [1]

Core Viewpoint - ServiceTitan Inc. is identified as one of the best beaten down growth stocks to buy now, despite a recent target price cut by Piper Sandler [1][4]. Group 1: Stock Performance and Analyst Opinions - Piper Sandler reduced its target price on ServiceTitan by 14.3% to $120 from $140 but maintained an Overweight rating on the stock [1][2]. - Following the news, ServiceTitan's stock price fell 21.8% to $61.29 from $78.34, before slightly rebounding to $63.74 [4]. - Despite the decline, the median target price from analysts is $130.50, indicating a potential upside of 104.74% [4]. Group 2: Company Overview - ServiceTitan Inc. is a customer relationship management (CRM) software provider focused on trade persons and service contractors, founded in June 2008 in Glendale, California [5]. Group 3: Market Context - Concerns regarding seat compression due to artificial intelligence, particularly vibe coding, contributed to the target price cut for ServiceTitan [2]. - The launch of open-source plugins for generative AI tools by Anthropic has raised fears among investors about the potential for software replacement, leading to a significant market capitalization loss of $285 billion across software, financial services, and asset management sectors [3]. Group 4: Investment Considerations - While ServiceTitan is seen as a potential investment, some analysts suggest that other AI stocks may offer greater upside potential with less downside risk [6].

Core Viewpoint - ServiceTitan, Inc. will report its financial results for the fiscal fourth quarter and full year ended January 31, 2026, on March 12, 2026, after market close, and will provide an outlook for fiscal year 2027 [1]. Group 1: Financial Reporting - The financial results will be announced after market close on March 12, 2026 [1]. - A conference call will be held at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on the same day to discuss the results [1][2]. - A webcast replay of the conference call will be available for twelve months following the event [2]. Group 2: Company Overview - ServiceTitan is a software platform that supports trades businesses with a cloud-based, end-to-end solution [3]. - The platform provides contractors with tools to manage their business operations and enhance customer experience [3]. - ServiceTitan aims to equip tradespeople with technology in an industry that has been historically underserved by technological advancements [3].

Group 1 - Piper Sandler downgraded ratings for three enterprise software stocks: Adobe, Freshworks, and Vertex, from "Overweight" to "Neutral" and significantly reduced their target prices to $330, $12, and $20 respectively [1] - The rationale for the bearish outlook includes concerns that AI-driven efficiency will suppress or reduce employee growth, negatively impacting software companies that charge per seat [1] - The report anticipates that 2026 will mark the fifth consecutive year of slowing growth in the software industry, leading to valuation downgrades for companies on their coverage list [1] Group 2 - Target prices were also lowered for several other companies including Amplitude, Asana, BlackLine, Braze, Figma, HubSpot, Salesforce, Oracle, Klaviyo, monday.com, ServiceTitan, and ZoomInfo [2] - Despite the overall pessimism in the software sector, Piper Sandler remains optimistic about Microsoft and ServiceTitan, naming them as top picks for 2026 [2] - The analysis suggests that Microsoft is potentially the best pure play in the current AI application space, with positive sentiment emerging from CIO surveys regarding Azure and Copilot activities [2]

Company Performance - BigBear.ai's revenue declined by 20% year over year in Q3, with a gross margin contraction of 3.5 percentage points to 22.4% [5] - BigBear.ai has been unprofitable for the past four years and has missed analysts' earnings per share estimates in three out of the last four quarters [5] - ServiceTitan reported a 25% revenue growth in Q3, achieving an annual revenue run rate of nearly $1 billion [6][7] - ServiceTitan's adjusted operating margin improved to 8.6%, up from 0.8% in the prior-year period [6] Market Sentiment - Both BigBear.ai and ServiceTitan have experienced significant stock declines, with BigBear.ai down 21.4% and ServiceTitan down 23.6% over the past six months, despite the S&P 500 gaining 9.8% [2][3] - Investors are pessimistic about ServiceTitan's outlook due to concerns about the impact of AI on SaaS companies, despite its strong sales growth [3] Investment Outlook - ServiceTitan is viewed as a promising investment opportunity compared to BigBear.ai, which is struggling [4] - ServiceTitan has consistently beaten analysts' earnings expectations for the past four quarters, indicating potential undervaluation [7] - The likelihood of AI disrupting ServiceTitan's business model appears low, suggesting stability in its growth trajectory [8]

Core Viewpoint - ServiceTitan Inc. is recognized as an underpriced compounder and a leading vertical software asset, well-positioned for AI advancements, following an upgrade by Morgan Stanley from Equal-weight to Overweight with a price target increase to $131.00 [1][4] Group 1: Analyst Upgrade - Morgan Stanley upgraded ServiceTitan from Equal-weight to Overweight, raising the price target from $125.00 to $131.00, indicating a positive outlook on the stock's potential [1][2] - The upgrade comes nearly a year after the initial coverage, reflecting a shift in sentiment regarding the company's valuation and growth prospects [2][3] Group 2: Company Positioning - The firm believes ServiceTitan is well-positioned for artificial intelligence, with steady growth and margin expansion expected to drive the stock towards its price target [3][4] - ServiceTitan is viewed as attractive both on its own and in comparison to peers in the vertical software space, indicating strong relative performance [5] Group 3: Market Outlook - Morgan Stanley notes an attractive upside for ServiceTitan shares, with a favorable 5:1 bull/bear skew over a one-year horizon, suggesting confidence in the stock's performance [4] - The company is considered a core portfolio holding for the long term, emphasizing its potential for sustained growth [4]