Tyler Technologies Provides Updated 2021 Guidance; Street Says Buy

Tyler Technologies (TYL) has highlighted updates regarding its 2021 guidance. Tyler provides integrated information management solutions and services to the public sector.

The company said the new forecasts include the impact of the NIC Inc. acquisition that was completed on April 21.

Following the announcement, the shares of the company rose 1.1% to close at $407.55 on June 7.

For 2021, Tyler expects GAAP total revenue to be between $1.507 – $1.537 billion and non-GAAP revenue in the range of $1.510 – $1.540 billion.

Adjusted earnings per share are expected to be in the $6.65 to $6.77 range. Meanwhile, GAAP diluted earnings per share are likely to be in the range of $3.58 to $3.74, which could vary due to the impact of stock incentive awards, the company said.

Tyler CEO Lynn Moore said, “Our guidance reflects a strong year-to-date performance and improving market activity for Tyler.”

“As we noted previously, the NIC acquisition is expected to be significantly accretive to non-GAAP earnings per share and EBITDA. As we continue to work together with the NIC leadership team to identify and prioritize opportunities, we are emboldened by the potential to accelerate long-term growth in both of our businesses and expand our platform for connected communities,” Moore added. (See Tyler Technologies stock analysis on TipRanks)

On June 3, Tyler agreed to acquire VendEngine, a privately-held cloud-based software provider, in an all-cash deal for $84 million. The deal will enable Tyler to offer better solutions for jails and correctional facilities to sustain proper safety measures and daily duties.

Following the acquisition announcement, Needham analyst Scott Berg maintained a Buy rating and a price target of $480 (17.8% upside potential).

Berg said, “We believe the acquisition is consistent with Tyler’s strategy of acquiring adjacent Cloud based technologies that complement their existing product portfolios for jail administration.”

Consensus among analysts is a Strong Buy based on 4 Buys versus 1 Hold. The TYL average analyst price target stands at $495 and implies upside potential of 21.5% to current levels. Shares have gained 13.8% over the past year.

TipRanks data shows that financial blogger opinions are 100% bullish on Tyler, compared to a sector average of 69%.

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