Appian (APPN – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Kevin Kumar from Goldman Sachs maintained a Buy rating on the stock and has a $50.00 price target.
Kevin Kumar’s Buy rating for Appian’s stock is based on several key growth indicators and the company’s impressive fourth-quarter performance. Appian’s total revenue and EBITDA margins exceeded expectations, with total revenue coming in 3% above estimates and EBITDA margins outperforming by a significant 10 percentage points. Additionally, the company’s guidance for 2024 is optimistic, projecting a solid 7% above consensus for EBITDA, which demonstrates confidence in the company’s financial direction. The 23% year-over-year growth in cloud revenue further solidifies Appian’s strong position, especially considering it exceeded the midpoint of guidance by 5%.
The company’s subscription, software, and support revenue also grew by an impressive 21%, indicating strong market execution and favorable sales dynamics. Furthermore, the cloud revenue retention rate showed an uptick, particularly among Appian’s largest customers, illustrating customer satisfaction and potential for repeat business. The top 10 net new software deals saw a substantial 70% year-over-year increase in total contract value during the fourth quarter, demonstrating significant sales momentum. Kumar sees Appian as a leading workflow automation platform, particularly in regulated markets, and believes that the company is on track for sustainable cloud revenue growth above 20%. This, combined with better-than-expected margins and a trajectory towards cash flow breakeven in the second half of 2024, supports the analyst’s positive outlook and Buy rating on APPN.
See Insiders’ Hot Stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Appian (APPN) Company Description:
Appian Corp. provides business process management (BPM) solutions. Its BPM tools automate and measures business processes. The firm’s products include BPM software, case management, mobile application development, and platform-as-a-service. The company was founded by Matt Calkins, Robert C. Kramer, Marc Wilson, and Michael Beckley in 1999 and is headquartered in Reston, V A.
Read More on APPN:
- Appian Announces Fourth Quarter and Full Year 2023 Financial Results
- APPN Earnings Report this Week: Is It a Buy, Ahead of Earnings?
- Appian price target lowered to $45 from $50 at KeyBanc
- Appian To Announce Fourth Quarter and Full Year 2023 Financial Results on February 15
- Appian price target lowered to $35 from $40 at Barclays
