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Investing.com - DA Davidson raised its price target on AppFolio (NASDAQ:APPF) to $375 from $350 on Wednesday, maintaining a Buy rating on the property management software company. The stock has shown remarkable momentum, gaining over 21% in the past week and currently trading near its 52-week high of $326.04.
The price target increase follows a fireside chat with AppFolio’s VP of Finance, Bill Schroeder, where the firm discussed factors driving the company’s continued outperformance and future growth opportunities. According to InvestingPro data, the company has maintained strong revenue growth of 19.47% over the last twelve months, with a market capitalization of $11.25 billion.
DA Davidson expressed increased confidence in AppFolio’s ability to monetize the value it provides to residents and property managers, noting potential for additional revenue through product innovation and pricing strategies.
The new $375 price target represents 14 times the company’s projected 2026 revenue, which DA Davidson considers a deserved premium for AppFolio’s domain expertise and growth trajectory.
The research firm reiterated its Buy rating, stating that some of AppFolio’s growth opportunities remain underappreciated by investors.
In other recent news, AppFolio has reported impressive 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, which was above the expected $230.1 million. In addition to these financial results, AppFolio has appointed Tim Eaton (NYSE:ETN) as its permanent Chief Financial Officer, effective July 30. Eaton has been with the company since 2020 and has served as Interim CFO since October 2024. Piper Sandler upgraded AppFolio’s stock rating from Neutral to Overweight, raising its price target significantly to $350.00 from $240.00. This upgrade followed the company’s second-quarter results, which showed an acceleration in top-line growth to 19%, up from 16% in the previous quarter. The growth is attributed to AppFolio’s investments in go-to-market strategies and product development.
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