William Blair analyst Stephen Sheldon has reiterated their bullish stance on APPF stock, giving a Buy rating on April 22.
Stephen Sheldon has given his Buy rating due to a combination of factors that highlight AppFolio’s potential for growth and strategic positioning. Despite the first-quarter results being slightly below expectations, the company maintained its guidance for 2025, indicating confidence in its long-term growth trajectory. The projected revenue growth of 16%-18% and the increase in non-GAAP operating margins suggest a positive outlook, with strategic reinvestments, particularly in R&D, likely to drive future performance.
Moreover, AppFolio’s ability to increase average revenue per user by 10% year-over-year, driven by customer upgrades to higher-priced subscriptions and the adoption of AI solutions, underscores its strong market position. The high percentage of new customers utilizing AI solutions reflects the company’s innovative capabilities, which are expected to enhance monetization opportunities. Although there are challenges, such as a decrease in the implied new customer size, the overall strategic initiatives and market demand for AppFolio’s offerings support the Buy rating.
Based on the recent corporate insider activity of 70 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of APPF in relation to earlier this year.