AppFolio stock rating upgraded by KBW on balanced risk-reward outlook

Published 31/07/2025, 11:36
AppFolio stock rating upgraded by KBW on balanced risk-reward outlook

Investing.com - Keefe, Bruyette & Woods upgraded AppFolio (NASDAQ:APPF) from Underperform to Market Perform on Wednesday, while raising its price target to $267.00 from $205.00.

The upgrade reflects KBW’s assessment that AppFolio now presents a more balanced risk-reward profile, with the firm noting a lack of downside catalysts following negative consensus revisions and approximately 10% year-to-date underperformance compared to software peers. The company has demonstrated strong performance with revenue growth of 22.73% over the last twelve months, though InvestingPro analysis suggests the stock is currently trading above its Fair Value.

KBW expects AppFolio’s second-quarter revenue growth to reaccelerate after five consecutive quarters of deceleration, citing benefits from value-added services ARPU growth as the company laps the April 2024 credit card fee reduction and implements a recent approximately 15% price increase for screening products.

The research firm’s revised 2025-2026 revenue and earnings estimates now stand 1-2% and 2-4% above consensus, respectively, supporting what KBW describes as a "tactically positive stance" ahead of AppFolio’s second-quarter earnings report.

KBW also identified potential positive optionality from AppFolio’s resident services initiatives, though noted some success in this area "seems necessary to support APPF’s growth profile/valuation."

In other recent news, AppFolio has been selected by Northpoint Asset Management to power its property management operations. Northpoint manages over 8,000 rental units, representing more than $5 billion in real estate assets across the United States. This partnership is expected to enhance Northpoint’s operational efficiency. Additionally, AppFolio introduced Realm-X Performers, a new set of AI agents, at the NAA Apartmentalize 2025 conference. These AI agents are designed to automate complex property management workflows. The technology includes Realm-X Leasing Performer, which handles property inquiries and schedules showings, and Realm-X Maintenance Performer, which uses image recognition to diagnose maintenance requests and create work orders. These developments reflect AppFolio’s ongoing commitment to innovation in property management solutions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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