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Investing.com - Piper Sandler has upgraded AppFolio (NASDAQ:APPF) from Neutral to Overweight while significantly raising its price target to $350.00 from $240.00. The stock, currently trading near its 52-week high with a market cap of $9.6 billion, has delivered impressive returns of 24% over the past year according to InvestingPro data.
The upgrade follows AppFolio’s second-quarter results, which showed top-line growth acceleration to 19%, up from 16% in the previous quarter, reflecting the company’s go-to-market and product investments paying off.
Piper Sandler cited several positive factors in its decision, including the appointment of Tim Eaton (NYSE:ETN) as CFO, which removes business uncertainty, and encouraging signs in premium tier mix shift and competitive success.
The research firm expressed increased confidence in AppFolio’s near-term trends as the company finishes lapping tough automated clearing house (ACH) comparisons, leading to higher estimates as analysts roll forward their projections to 2030.
Piper Sandler views AppFolio as having a favorable risk-reward profile at 14 times 2026 estimated enterprise value to gross profit, in line with vertical peer averages, describing it as a "high quality vertical software franchise."
In other recent news, AppFolio Inc. reported its second-quarter earnings for 2025, which exceeded Wall Street expectations. The company’s earnings per share (EPS) were $1.38, surpassing the forecasted $1.27 by 8.66%. Additionally, AppFolio’s revenue reached $236 million, beating the anticipated $230.1 million. These results highlight the company’s strong performance in the recent quarter. Analysts from various firms are likely to take note of these developments, which may influence their future evaluations. The earnings announcement is a significant event for investors, providing key insights into the company’s financial health. AppFolio’s ability to exceed both earnings and revenue estimates showcases its operational efficiency and market positioning. These recent developments are crucial for stakeholders assessing the company’s future prospects.
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