KeyBanc upgrades AppFolio stock rating to Overweight on ARPU growth outlook

Investing.com - KeyBanc upgraded AppFolio (NASDAQ:APPF), a property management software company with an $8 billion market cap and "GREAT" financial health score according to InvestingPro, from Sector Weight to Overweight on Friday, setting a price target of $285.00.

The upgrade follows KeyBanc’s attendance at AppFolio’s annual FUTURE user conference this week, where the firm gained renewed confidence in the company’s momentum with both new customers and expansions on its Plus and Max offerings. This confidence is supported by AppFolio’s impressive 19.47% revenue growth and strong profitability metrics.

KeyBanc highlighted its improved understanding of "attractive and TAM-expansive opportunities in monetizing the resident experience" as a key factor in the rating change.

The firm raised its 2026 growth estimates for AppFolio, citing stronger conviction in the company’s Average Revenue Per User (ARPU) growth potential.

With AppFolio shares trading at 7.2x 2026 EV/sales, KeyBanc views the recent stock pullback as "a buying opportunity" for investors.

In other recent news, AppFolio Inc. reported its financial results for the second quarter of 2025, highlighting a 19% increase in revenue compared to the same period last year. This growth was attributed to gains in the company’s core solutions and value-added services. Despite these positive results, there was a slight dip in the stock during aftermarket trading. The company’s performance reflects a strong financial standing, although investor sentiment appeared mixed. No significant mergers or acquisitions were announced in the recent updates. Analyst updates were not provided in the current context, leaving the focus primarily on the earnings report. These developments are part of AppFolio’s ongoing business activities.

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