What's An Attractive Play In US Residential Real Estate Amid Rising Interest Rates? Analyst Highlights AppFolio


20-Year Pro Trader Reveals His "MoneyLine"

Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.


J.P.Morgan analyst Alexei Gogolev initiated coverage on AppFolio Inc (NASDAQ:APPF) at an Overweight rating with a price target of $200

The analyst believes APPF is an attractive play on the U.S. real estate market amid high-interest rates and increased vacancies from newly constructed residential properties. 

Given relatively costly mortgage rates, consumers are expected to rent more and higher availability of new construction can boost move-in and lead the revenue growth.

Apart from this, the analyst thinks APPF can generate further expansion opportunities from the absence of vast property management-specific cloud solutions for SMB clients.

The analyst notes APPF, with historic 3-year revenue CAGR of around 28% driven by higher units on the platform and expansion of ARPU, looks to exit 2023 with over 11% adjusted EBIT margin and 13% FCF margin.

The analyst estimates adjusted EPS of $0.73 for FY23 and $2.37 for FY24.

Last month, APPF posted Q2 FY23 revenues of $147.1 million, beating the consensus of $143.8 million, and EPS of $0.23, beating the consensus of $0.12

Price Action: APPF shares are trading higher by 2.98% at $169.60 on the last check Thursday.


20-Year Pro Trader Reveals His "MoneyLine"

Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.


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