Updated Aug 7 at 4:03pm ET.
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D.A. Davidson set its price target for the stock at $225. This is roughly in line with the average analyst target of $222 and sits significantly higher than the current trading price of about $193. While a single analyst's target change is routine, it signals that professional researchers see a path for the stock to rise about 16 percent from here. This matches the broader view that the company is successfully growing its footprint in the property management market.
Source: D.A. Davidson
The company reported second-quarter revenue of $281 million, a 19 percent increase from the same time last year. This growth helped the business cross $1 billion in total revenue over the last twelve months for the first time. Profits also improved, with operating income, the money left after paying for the day-to-day costs of running the business, rising 31 percent to $53 million.
The number of property units managed on the platform grew 8 percent to 9.6 million. This is a key number because the company's software becomes more valuable as it handles more apartments and homes. Management noted that customers are increasingly using AI tools to handle maintenance and accounting, which helps the company earn more from each unit it manages.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
The company expanded its partnership with Apartment List to offer a performance-based leasing tool. Instead of paying for every person who clicks an ad, property managers using the platform will now only pay a fee when a new tenant actually signs a lease.
This is a win for the company because it makes its marketplace more useful for property owners. By offering tools that only cost money when they produce a result, the company can attract more managers to its platform and encourage them to move away from traditional, less efficient advertising methods.
Source: Business Wire
Guggenheim set its price target for the stock at $232. This is slightly higher than the average analyst target of $222 and implies the stock could rise about 20 percent from its current price of $193. Setting a target like this indicates the firm believes the company's shift toward higher-priced software tiers and its growing unit base will continue to drive the stock higher over the coming year.
Source: Guggenheim
Analysts recently issued new price targets following the company's strong second-quarter earnings report. Most analysts, 9 out of 13, rate the stock a buy, with an average price target of $222 that suggests 12% upside from current levels.
The company has a habit of clearing the bar, beating analyst profit targets in six of the last eight quarters while growing its revenue by about 19 percent.
| Expectation | |
|---|---|
| EPS | $1.76 |
| Revenue | $294M |
