Appian stock price target lowered to $35 at TD Cowen on NRR pressure

Published 08/08/2025, 14:16
Appian stock price target lowered to $35 at TD Cowen on NRR pressure

Investing.com - TD Cowen reduced its price target on Appian Corp . (NASDAQ:APPN) to $35.00 from $37.00 on Friday, while maintaining a Hold rating on the stock. The software company, currently valued at $2.17 billion, trades at $29.18, with analyst targets ranging from $29 to $42.

The firm noted that Appian posted cloud growth of 18% at constant currency, exceeding TD Cowen’s estimate of 16%. Federal government demand has remained stable and was likely a source of billings strength for the company. InvestingPro data shows the company maintains impressive gross profit margins of 76.4%, with overall revenue growing at 13.15% year-over-year.

TD Cowen highlighted that artificial intelligence engagements are showing early traction for Appian. However, the company’s net revenue retention (NRR) decreased by one percentage point to 111%, and management removed its previous 110-120% targets for this metric.

While government revenue performed better than feared, TD Cowen pointed out that NRR continues to face downward pressure from customers reducing their spending, which will likely weigh on Appian’s growth in future years.

The price target reduction reflects these mixed factors, with positive elements in cloud growth and federal business stability offset by persistent challenges in customer spending retention.

In other recent news, Appian Corporation’s second-quarter 2025 earnings results have drawn significant attention. The company reported a revenue of $170.64 million, surpassing forecasts by 6.64%, although earnings per share (EPS) came in at $0, missing the anticipated -$0.13. Despite the EPS miss, the revenue performance exceeded expectations, contributing to investor optimism. DA Davidson has assumed coverage of Appian with a Neutral rating, setting a price target of $30.00. The research firm highlighted that Appian’s revenue and earnings results were significantly above the company’s guidance. These developments indicate a positive reception from investors, even as analysts maintain a cautious outlook.

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