What Makes AppFolio (APPF) Attractive

AppFolio Inc. (NASDAQ:APPF) is one of the best software application stocks to buy according to Hedge Funds.

On January 15, D.A. Davidson analyst Clark Wright reaffirmed his bullish views on AppFolio Inc. (NASDAQ:APPF), maintaining a Buy rating on the stock. He estimated a price target of $325, implying an upside potential of 48%.

Wright’s stance follows the announcement of the Bilt 2.0 Credit Cards Program, which offers a revised reward system to cardholders and carries potential churn risk. The analyst believes that this would create a competitive opportunity for AppFolio Inc. (NASDAQ:APPF) to design its own offering that could be a suitable alternative in the market. Wright’s target price represents a forward price-to-free cash flow multiple of around 45x, but he sees continued strength in business fundamentals to support his rating.

On December 16, KeyBanc also maintained an Overweight rating on AppFolio Inc. (NASDAQ:APPF). The firm forecasted a price target of $270, which leads to an upside of 23%. KeyBanc’s rating is also backed by its strong confidence in business fundamentals, characterized by accelerating revenues and an overall compelling growth story.

AppFolio Inc. (NASDAQ:APPF) offers a cloud-based SaaS platform for the real estate industry, which helps users to streamline their property management operations. Their proprietary platform delivers agentic AI solutions for automating workflows, including property maintenance, leasing, managing business finances, and data analysis.

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.

READ NEXT: 15 Most Promising Mid-Cap Healthcare Stocks Under $50 and 11 Most Promising Small-Cap Industrial Stocks Under $50.

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