AppFolio (APPF) PT Raised to $210 at KBW as 'Weaker Margins Weigh on 2025 Guidance'

Keefe, Bruyette & Woods analyst Ryan Tomasello raised the price target on AppFolio (NASDAQ: APPF) to $210.00 (from $193.00) while maintaining an Underperform rating.

The analyst commented: "Weaker Margins Weigh on 2025 Guidance; Following 4Q results, we reduce our 2025-2026E non-GAAP operating income and EPS by an average of 2% as higher expenses more than offset stronger revenue growth. We take our target to $210 (from $193) incorporating the recent expansion in software multiples, but maintain our Underperform rating. APPF guided 2025 revenue growth relatively in line with consensus, but operating margin guidance came in well below (implying minimal margin expansion), resulting in operating income guidance -7% below consensus (at midpoint). As APPF's revenue growth slows meaningfully in 2025 and a reacceleration in expenses weighs on operating leverage/earnings growth, we expect this to drive multiple compression. The shares trade at 30x 2026E EBITDA, which is a roughly 20-30% premium to peers with similar earnings growth."

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