KeyBanc has lowered its price target on AppFolio (NASDAQ: APPF) to $255.00 from $270.00 while maintaining an Overweight rating on the property management software provider. The stock last traded at $207.10, down roughly 11% year-to-date and about 36% below its 52-week high of $326.04.
The revision follows AppFolio’s fourth-quarter financial report. Revenue growth accelerated for a third consecutive quarter, reaching 21.9% year-over-year, and unit growth accelerated for a second straight quarter to 8%. AppFolio’s revenue rose 18.88% over the trailing twelve months, underscoring a continued expansion in top-line momentum.
Despite those gains, the company’s initial revenue growth guidance for 2026 came in at 16.7%, a figure that missed broader market expectations. KeyBanc noted that the guidance could be conservative, pointing to the company’s pattern of providing comparable starting guidance for 2025 before raising it over the course of the year. The broker also highlighted AppFolio’s valuation metrics: a PEG ratio of 0.63 indicates the stock may be trading at a low price-to-earnings level relative to its growth outlook, even though its trailing P/E sits at 38.69.
Operational results were another focal point for the analyst. Improved operating margins and an encouraging margins outlook were cited as positive developments, and KeyBanc expressed constructive views on the fourth-quarter acceleration and the possibility of upward revisions to guidance later in the year.
KeyBanc attributed the majority of the price target reduction to a broader pullback in software valuations rather than to issues specific to AppFolio’s business. That distinction suggests the analyst sees the company’s fundamentals as largely intact while acknowledging downward pressure on sector multiples.
AppFolio also posted fourth-quarter 2025 results that beat consensus forecasts. The company reported earnings per share of $1.39 versus an expected $1.25, and revenue of $248 million compared with a $246.56 million consensus. Even with the upside on both EPS and revenue, the stock declined in aftermarket trading following the release.
Separately, William Blair has reiterated an Outperform rating on AppFolio, citing accelerating unit additions, revenue growth, and exceptional free cash flow as reasons for confidence. Together, the analyst commentary and the company’s reported results underline a favorable view from some brokers about AppFolio’s operational trajectory, even as valuation dynamics and conservative initial guidance present near-term questions for the share price.
Context note: The price-target adjustment and analyst commentary reflect a mix of company-specific results and broader software market valuation trends.