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Appian’s Cloud Growth Surpasses Expectations but AI Integration and Federal Spending Concerns Lead to Hold Rating

Appian’s Cloud Growth Surpasses Expectations but AI Integration and Federal Spending Concerns Lead to Hold Rating

In a report released today, Derrick Wood from TD Cowen maintained a Hold rating on Appian (APPNResearch Report), with a price target of $43.00.

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Derrick Wood has given his Hold rating due to a combination of factors influencing Appian’s current market position. The company’s cloud growth exceeded expectations, showcasing a 19% increase, which surpassed the anticipated 17%. However, the management’s guidance for future growth, including AI integration, suggests a gradual adoption curve, which tempers immediate revenue expectations.
Additionally, while Appian’s overall revenue growth and billing growth have been strong, there are signs of deceleration in cloud growth, as noted in the recent quarter. The management’s cautious outlook for federal spending and the slow monetization of AI technology contribute to the uncertainty, making a Hold rating appropriate despite the company’s solid performance against its targets.

In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $35.00 price target.

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