ServiceTitan Analysts See Margins Weighing on Valuation Post-IPO
- Management has to show clear path of improvement: BI
- Home-service software company expected to list in US this week
ServiceTitan could achieve an enterprise valuation of as much as $7.9 billion in the IPO.
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ServiceTitan Inc.’s profit margins will be key to closing a valuation gap relative to peers, according to Bloomberg Intelligence analysts, as the company’s initial public offering approaches.
The home-service software business is seeking to raise nearly $590 million in a first-time share sale this week after boosting the price range on Tuesday to $65 to $67 each from $52 to $57 apiece. The increase shows high investor interest in ServiceTitan, BI analysts led by Anurag Rana wrote in a note updated Tuesday. However, its valuation compared to larger rivals could be dented if it doesn’t make a clear effort to boost its margins, BI said.