Wall Street Stays Positive on AppFolio Inc. (APPF) Backed by Steady Fundamentals

AppFolio Inc. (NASDAQ:APPF) is among the best stocks you’ll wish you bought sooner. As of December 1, the company is a consensus Buy, and its 1-year median price target of $325 indicates a strong 43% upside.

However, AppFolio Inc. (NASDAQ:APPF)’s share price has been volatile recently, as noted by DA Davidson analyst Gil Luria in a November 19 note. Following the company’s recent Investor Day, Luria reaffirmed a Buy rating and maintained a $325 price target, according to TheFly.

At the investor day on November 18, management declined to provide long-term financial guidance, prompting a negative market reaction. The share price was down as much as 7.5% on the day but settled at -4.3% by the close. However, Luria viewed this response as “unjustified”, considering the strong underlying business fundamentals and healthy growth trends. In his view, the absence of long-term targets does not change the company’s growth trajectory, and AppFolio Inc. (NASDAQ:APPF) has ample opportunities to expand monetization.

While management did not provide any forward guidance at the event, they emphasized their focus on growing operating cash flow per share through profitable revenue growth, accelerating the adoption of premium-tier and value-added services, and cost discipline.

Apart from Luria, Piper Sandler analyst Hannah Rudoff, along with analysts from KeyBanc and William Blair, also reiterated their Buy ratings and price targets.

AppFolio Inc. (NASDAQ:APPF) provides a cloud-based property management platform for residential, commercial, and community association real estate operators.

While we acknowledge the potential of APPF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.