Appian stock price target raised to $40 from $35 at TD Cowen

Investing.com - TD Cowen raised its price target on Appian Corp. (NASDAQ:APPN) to $40.00 from $35.00 on Thursday, while maintaining a Hold rating on the software company’s stock. The new target sits close to Appian’s current price of $38.40, with InvestingPro data suggesting the stock is trading above its Fair Value, which may explain the cautious Hold rating.

The firm cited Appian’s cloud growth of 18% at constant currency, which exceeded TD Cowen’s estimate of 16%. The company also reported better-than-expected EBITDA results, while its cloud net revenue retention remained steady at 111%. Appian’s overall revenue reached $657.8 million with a 13.67% growth rate, supported by impressive gross profit margins of 76.34%.

Appian has raised its fiscal year 2025 cloud growth guidance to 18-19%, representing a one percentage point increase from previous forecasts. TD Cowen noted that 25% of Appian’s customers are now paying for AI deployments.

The research firm observed that Appian’s upmarket growth engine is demonstrating greater efficiency, indicating improved execution in targeting larger enterprise customers.

Despite these positive developments, TD Cowen maintained its Hold rating, noting it is still looking for signs that Appian’s software annual growth curve will bend higher before becoming more bullish on the stock.

In other recent news, Appian Corporation reported its second-quarter 2025 financial results, which showed a revenue of $170.64 million, surpassing forecasts by 6.64%. However, the earnings per share (EPS) came in at $0, missing the expected -$0.13. Additionally, DA Davidson assumed coverage of Appian with a Neutral rating and a $30.00 price target, noting the company’s performance exceeded expectations in both revenue and earnings. Meanwhile, TD Cowen adjusted its price target for Appian to $35.00 from $37.00, maintaining a Hold rating, and highlighted the company’s cloud growth and stable federal government demand.

Appian also announced a $10 million share repurchase program, effective immediately and continuing through August 28, 2027. This move allows the company to buy back its common stock through various methods, including open market purchases and privately negotiated transactions. In another development, Appian’s General Counsel, Christopher Winters, plans to retire by the end of the company’s fourth fiscal quarter in 2025. He will remain in his position until a successor is appointed, assisting with the transition process.

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