KeyBanc bullish on AppFolio, says property rental market 'underappreciated'

AppFolio

08/04/2022 12:31

** Shares in property management software provider  APPF.O 
up ~2% at $112.82 premarket 
    ** Stock set to break three-day losing streak, if current
gains hold
    ** Brokerage KeyBanc lifts rating on APPF to "overweight"
from "sector weight", citing a "strong and underappreciated"
property rental market backdrop
    ** Sets PT of $143, representing an upside of ~29% to
stock's Thursday close
    ** Sees robust spend environment for property
managers/owners, says it could lead to growth upside for APPF in
2022
    ** Rent growth and occupancy rates ended on a high note in
2021 and continued its strong momentum into 2022, with positive
feedback from property managers highlighting good tenant demand
thus far into the year - KeyBanc
    ** Adds competition concerns alleviated for APPF given co's
"considerable" go-to-market improvements and divestment of its
legal business to focus on its core 
    ** As of last close, stock down ~8% YTD

 (Reporting by Deborah Sophia in Bengaluru)
 ((DeborahMary.Sophia@thomsonreuters.com;))