2023-04-18 08:55:29 ET
Powerschool Holdings ( NYSE: PWSC ) and Tyler Technologies ( NYSE: TYL ) on Tuesday were upgraded to Buy from a prior investment rating of Neutral by analysts at Goldman Sachs. They said the makers of cloud-based software are poised to increase revenue.
“We expect to see steady improvement in net revenue retention (NRR),” Goldmans Sachs said about Powerschool, which makes software for school administrators. “We expect to see milestones in international that could ultimately drive a 100- to 200-basis-point tailwind to revenue, likely driving organic growth consistently over 10%.”
Tyler Technologies, which makes software for the public sector, can improve its sales cycles and research and development with its shift to cloud-based hosting of software services, the bank said.
“We view 2023 as a trough year for margins, driven by the ongoing transition to cloud from on-premise,” according to Goldman Sachs.
For further details see:
Powerschool, Tyler Technologies upgraded to Buy at Goldman Sachs