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Research Alert: CFRA Reiterates Hold Rating On Shares Of Appian Corporation

05/10/2021 20:44

12:40 AM EDT, 05/11/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We arrive at our 12-month target of $102 (from $205) by applying an EV/Sales of 19.9x our 2021 estimate, sharply above peers -- APPN's low-code and automation offerings remain at the forefront from a competitive standpoint, with a healthy spending backdrop and steady expansion of customer use cases, but its valuation remains a conundrum, even after recent share pressure, and reflects our Hold rating. We widen our 2021 loss per share estimate to $0.67 from $0.64 and keep 2022's loss at $0.44. APPN prints a first-quarter loss per share of $0.06 vs. a $0.13 loss, narrower than consensus by $0.07. Gross margin surpassed expectations (74.6% vs. 69.4%), aided by a lower mix of professional services. APPN's revenues came in at $89M (up 13% Y/Y), compared to consensus of $83M, powered by strong cloud subscription growth (up 38% Y/Y) and net retention (118%). The company took down its loss per share target for 2021 but was largely a function of near-term sales investments rather than an abrupt change in prospects.