KeyBanc analyst Jason Celino raised the firm’s price target on AppFolio to $264 from $254 and keeps an Overweight rating on the shares. The firm notes AppFolio is raising its subscription prices again, a 5%-7% increase. KeyBanc views this increase as a way to incentivize up-tiering to the new highest tier, Max. While discussions with AppFolio suggest the price increase is already contemplated in the 2024 guide, and likely only a 0.25%-0.5% tailwind anyway, the firm could still see modest potential upside on any uptick in up-tiering to Max. Net, it believes AppFolio is exercising pricing power, which reinforces its ARPU expansion thesis.
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