Appian lower following appeals court hearing in fight with Pegasystems

Shares of Appian (APPN) are down 5% to $36.83 in Thursday afternoon trading a day after a Court of Appeals hearing related to the company’s legal fight with Pegasystems (PEGA) that took place yesterday. In a note to investors yesterday regarding the proceedings, DA Davidson analyst Gil Luria said based upon observations from the hearings, the firm believes it is “incrementally less likely” that Pega will achieve an outright reversal of the $2B damages to Appian. A ruling from the three judges presiding over yesterday’s hearings “may take several weeks to months to surface” and after it does a second appeal process may begin in the Supreme Court of Virginia, noted the analyst, who maintains the view that “ultimate resolution is still just 12-18 months away.” DA Davidson keeps Buy rating and $55 price target on Appian shares.