ServiceTitan's (TTAN) Q4 results showcased "strong execution" while beating consensus estimates across all metrics, Morgan Stanley said in a note Friday.

The company's Q4 gross transaction volume growth was probably "light of investor expectations" but the rest of the results and guidance were "in line or ahead of bogeys," the note said.

Meanwhile, weakness linked to investor expectations into a Q4 with a "very tough comp creates opportunity given consistent fundamentals and an attractive setup in FY27, with a clear path to sustaining >20% revenue growth," the investment firm said.

ServiceTitan is also well placed for AI due to factors like its proprietary data sets, which serve as a moat, as well as its integration of AI into "complex and industry-specific end-to-end workflows," the note said.

Also, the "physical nature of ServiceTitan's trade industries/end-markets should face minimal AI disruption," it added.

Morgan Stanley reiterated ServiceTitan's overweight rating, while decreasing the company's price target to $118 from $131.

Price: 73.15, Change: -2.50, Percent Change: -3.30