Street Calls of the Week
Investing.com - Keefe, Bruyette & Woods upgraded AppFolio (NASDAQ:APPF) from Market Perform to Outperform on Friday, maintaining a price target of $311.00 that represents 30% potential upside.
The upgrade follows a 31% underperformance in AppFolio shares since early August, with the stock’s valuation now near the low end of its historical multiples, according to KBW. The stock currently trades at a P/E ratio of 43.32 and an EV/EBITDA of 58.5, with analyst targets ranging from $285 to $375.
KBW expects recent and upcoming launches of AI and resident services products to accelerate AppFolio’s revenue growth above 20%, representing a 150 basis point acceleration from current levels.
The firm believes this growth acceleration is underappreciated by the market, noting that its fourth-quarter 2025 and full-year 2026 revenue growth estimates of 20.9% and 19.8% exceed consensus by 100 and 120 basis points respectively.
KBW identified AppFolio’s mid-November investor day as a potential catalyst that could highlight underappreciated growth drivers from AI and resident services, with the firm’s 2H25 and 2026 earnings per share estimates running 7-8% above consensus. Investors should note that AppFolio’s next earnings report is scheduled for October 30, 2025.
In other recent news, AppFolio Inc. reported a 19% year-over-year increase in revenue for the second quarter of 2025. This growth was attributed to substantial gains in its core solutions and value-added services. In addition, KeyBanc has upgraded AppFolio’s stock rating from Sector Weight to Overweight, with a new price target set at $285.00. The upgrade followed KeyBanc’s participation in AppFolio’s annual FUTURE user conference, where the firm observed strong momentum with new customer acquisitions and expansions in its Plus and Max offerings. These developments indicate a positive outlook for AppFolio, as noted by KeyBanc.
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