AppFolio price target raised to $300 from $275 at KeyBanc

KeyBanc raised the firm’s price target on AppFolio to $300 from $275 and keeps an Overweight rating on the shares. AppFolio posted solid Q2 results, beating revenue and operating income expectations by $6.8M and $7.6M, respectively, and raised its 2024 revenue growth outlook to 25%, and operating margin guidance higher to 24%, the analyst tells investors in a research note. While KeyBanc fully expects revenue growth to decelerate in the the second half with the lapping of last year’s ACH benefits, the company’s move up-market, ARPU expansion efforts, and long-term operating margin upside remain underappreciated, the firm says.