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Plano, Texas-based Tyler Technologies, Inc. (TYL) provides integrated software and technology management solutions. Valued at a market cap of $13.6 billion, the company designs, develops, markets, and supports a range of software solutions to serve mission-critical back-office functions.
This tech company has significantly underperformed the broader market over the past 52 weeks. Shares of TYL have declined 49% over this time frame, while the broader S&P 500 Index ($SPX) has soared 13%. Moreover, on a YTD basis, the stock is down 30.8%, while SPX has risen marginally.
Narrowing the focus, TYL has also lagged the State Street SPDR S&P Software & Services ETF (XSW), which decreased 21.5% over the past 52 weeks and 20.2% on a YTD basis.
On Feb. 11, TYL posted weaker-than-expected Q4 results, sending its shares down 15.4% in the following trading session. The company’s adjusted EPS of $2.64 fell short of the consensus estimates of $2.71. Meanwhile, its revenue of $575.2 million missed analyst expectations by 2.4%.
For fiscal 2026, ending in December, analysts expect TYL’s EPS to grow 13.2% year-over-year to $9.97. The company’s earnings surprise history is mixed. It topped consensus estimates in three of the last four quarters, while missing in the other quarter.
Among the 22 analysts covering the stock, the consensus rating is a "Strong Buy,” which is based on 16 “Strong Buy,” one "Moderate Buy,” and five "Hold” ratings.
The configuration is more bullish than a month ago, with 15 analysts suggesting a “Strong Buy” rating.
On Feb. 17, Peter Heckmann from D.A. Davidson maintained a “Buy" rating on TYL, with a price target of $460, indicating a 46.8% potential upside from the current levels.
The mean price target of $459.65 suggests a 46.7% potential upside from the current levels, while its Street-high price target of $675 suggests an ambitious 115.4% potential upside from the current levels.
