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AppFolio upgraded to Market Perform at Keefe on more balanced risk-reward

Keefe Bruyette upgraded AppFolio (APPF) to Market Perform from Underperform with a price target of $267, up from $205. The firm sees a more balanced risk-reward and believes that downside catalysts for the stock are lacking following negative consensus revisions and a 10% year-to-date underperformance vs. the company’s software peers,the analyst tells investors in a research note. Keefe adds that it expects Q2 revenue growth to reaccelerate following five quarters of deceleration as VAS average revenue per user growth benefits from the lapping of the April 2024 credit card fee reduction and a recent 15% price increase for screening products.

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