Jefferies Initiates Hold Ratings on ServiceTitan and Guidewire Amid AI Monetization Concerns
Jefferies has initiated coverage on vertical software providers ServiceTitan (TTAN) and Guidewire (GWRE) with 'Hold' ratings. The analyst firm expressed caution regarding the sector, noting that vertical software has underperformed significantly over the last five years, declining approximately 5% during that period. The decision to maintain a neutral stance is driven by a lack of clear evidence regarding how these companies will effectively monetize artificial intelligence. Jefferies indicated it is waiting for tangible proof of AI-driven revenue growth before upgrading the stocks or adopting a more bullish outlook on the sector.
