Beyond The Numbers: 4 Analysts Discuss AppFolio Stock

Providing a diverse range of perspectives from bullish to bearish, 4 analysts have published ratings on AppFolio APPF in the last three months.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $260.0, a high estimate of $295.00, and a low estimate of $205.00. This current average represents a 2.8% decrease from the previous average price target of $267.50.

Investigating Analyst Ratings: An Elaborate Study

The analysis of recent analyst actions sheds light on the perception of AppFolio by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|-----------------------|---------------|---------------|--------------------|--------------------| |Ryan Tomasello |Keefe, Bruyette & Woods|Lowers |Underweight | $205.00|$210.00 | |Peter Heckmann |DA Davidson |Lowers |Buy | $275.00|$300.00 | |John Campbell |Stephens & Co. |Maintains |Overweight | $295.00|$295.00 | |Brent Bracelin |Piper Sandler |Maintains |Neutral | $265.00|$265.00 |

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to AppFolio. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of AppFolio compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for AppFolio's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of AppFolio's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on AppFolio analyst ratings.

Delving into AppFolio's Background

AppFolio Inc provides cloud-based software solutions for the real estate industry. Its property management software offers property managers an end-to-end solution to their business needs. The group's products include cloud-based property management software (Appfolio Property Manager). Its solutions are AppFolio Property Manager Core, AppFolio Property Manager Plus, and AppFolio Property Manager Max. It also offers value-added services, such as screening, risk mitigation, and electronic payment services. Its markets are Single-Family, Multifamily, Student Housing, Affordable Housing, Community Associations, Commercial, and Investment Management. The business activity of the firm predominantly functions in the United States and it generates revenue in the form of subscription fees.

Financial Insights: AppFolio

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Over the 3M period, AppFolio showcased positive performance, achieving a revenue growth rate of 18.53% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: AppFolio's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 50.44% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): AppFolio's ROE excels beyond industry benchmarks, reaching 22.04%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): AppFolio's ROA stands out, surpassing industry averages. With an impressive ROA of 17.87%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: AppFolio's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.08.

What Are Analyst Ratings?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.