Appian downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Appian (APPN) to Equal Weight from Overweight with a price target of $25, down from $41. The firm says the market environment for seat-based models like Appian remains challenged given fears of AI competition and the potential impact on seat growth. While Appian could post upside to current 2026 estimates, refuting longer-term AI concerns likely requires a sustained period of sales acceleration and more substantial progress in transitioning revenue streams from seats to a hybrid model, the analyst tells investors in a research note. Morgan Stanley thinks investor confidence in “bellwethers” like ServiceNow and Salesforce has to be reasserted before a story like Appian can be rewarded.