AppFolio price target raised to $235 from $215 at BTIG

BTIG analyst Soham Bhonsle raised the firm’s price target on AppFolio to $235 from $215 and keeps a Buy rating on the shares. Driving the increase is a modest improvement in the firm’s revenue outlook for FY25 and a 1-time increase in its target multiple from 8times to 9-times EV/Sales, BTIG says. The firm acknowledges that the strength in shares recently makes for a tricky set-up over the coming quarters. However, with penetration within its estimated TAM still sitting at about 5% today, BTIG views AppFolio as a long-term compounder as it continues its move up-market; entices current/new customers to adopt higher-priced tiers; increases penetration within its value-added business lines; and introduces new capabilities/products into its pipeline.