DA Davidson on Friday lowered its price target for AppFolio (NASDAQ: APPF) to $275.00 from $325.00 while keeping a Buy rating on the property management software provider. The research note follows the company’s most recent quarterly report, which included a shortfall in value-added services revenue and a conservative outlook for 2026 that tempered otherwise strong results.
According to InvestingPro data cited by the firm, AppFolio shares were trading at $189.76 and sit near a 52-week low of $190.24. DA Davidson said the stock dropped roughly 11% in after-hours trading after the earnings release, despite the quarter delivering strong unit growth and earnings that topped expectations.
The company reported revenue growth of 18.88% and remains profitable on a trailing twelve-month basis, with net income of $203.75 million. DA Davidson highlighted that AppFolio continues to see favorable upmarket new business trends and rising adoption of resident services and premium subscription tiers, factors that support the firm’s retained Buy view even as it trims the price target.
DA Davidson’s revised $275 price objective equates to a multiple of 38 times the company’s expected 2026 free cash flow, per the note.
Other firms also updated their models and targets after the quarter. Piper Sandler cut its price target on AppFolio to $245 from $350, pointing to the company’s 2026 revenue growth guidance of 16.7% at the midpoint as a reason for the reduction because that midpoint landed below Street expectations. KeyBanc adjusted its target to $255 from $270 and kept an Overweight rating, referencing the company’s reported 21.9% year-over-year revenue increase in the fourth quarter. William Blair reiterated an Outperform rating, calling out accelerating unit additions, stronger revenue growth and exceptional free cash flow.
AppFolio’s reported fourth-quarter 2025 results beat analyst forecasts on both earnings and sales. The company posted diluted earnings per share of $1.39 versus an expected $1.25, an 11.2% surprise. Revenue came in at $248 million, narrowly above the consensus forecast of $246.56 million.
Taken together, the analyst actions reflect a market balancing durable operational metrics - including unit growth, revenue acceleration and healthy free cash flow - against the disappointment in value-added services performance and the company’s restrained near-term revenue outlook.
Investors will likely be watching subsequent quarters for confirmation that the company’s upmarket momentum and higher-tier subscription adoption translate into the higher-margin services revenue that underpinned prior valuations. For now, analysts have adjusted price targets and reiterated varying degrees of conviction while the stock trades near its yearly lows.