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Investing.com - Keefe, Bruyette & Woods (KBW) raised its price target on AppFolio (NASDAQ:APPF) to $311.00 from $295.00 while maintaining a Market Perform rating on the stock.
The price target increase reflects KBW’s expectation for accelerating revenue growth in the second half of the year. The firm forecasts revenue growth will reach 21% in the fourth quarter, up from 19.4% in the second quarter.
KBW attributes the anticipated growth primarily to the early stages of AppFolio’s resident services monetization initiatives. The revised price target represents 9.9x sales, 15x gross profit, 35x EBITDA, and 45x EPS based on KBW’s 2026 estimates.
Despite maintaining a Market Perform rating, KBW expressed tactical positivity toward the stock, noting that growing optimism around resident services initiatives could support share prices in the near term.
An upcoming investor day in November, the company’s first in two years, could generate additional excitement about AppFolio’s growth initiatives, according to KBW’s analysis.
In other recent news, AppFolio Inc. reported strong second-quarter results for 2025, surpassing Wall Street expectations. The company achieved earnings per share of $1.38, exceeding the forecasted $1.27, and generated revenue of $236 million, beating the anticipated $230.1 million. Piper Sandler upgraded AppFolio’s stock rating from Neutral to Overweight, citing growth acceleration and raising its price target to $350 from $240. Additionally, DA Davidson increased its price target for AppFolio to $375 from $350, maintaining a Buy rating after discussions with the company’s VP of Finance. In corporate developments, AppFolio appointed Tim Eaton as the permanent Chief Financial Officer, effective July 30. Eaton has been with the company since 2020 and served as Interim CFO since October 2024. These updates reflect AppFolio’s continued focus on growth and strategic leadership changes.
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