The Appen Ltd (ASX: APX) share price is currently up by 4%.
Looking at the S&P/ASX 200 Index (ASX: XJO), many of the leading performers today are tech names.
For example, the Block Inc (ASX: SQ2) share price is up 6.7%, the Xero Limited (ASX: XRO) share price is up 4.2%, the Altium Limited (ASX: ALU) share price is up 4.2% and the WiseTech Global Ltd (ASX: WTC) share price is up 3.4%.
While the Appen share price is currently up by 4% today and 6% over the last month, it is still down significantly in 2022. In the calendar year to date, Appen shares currently register a decline of 36%.
Can the Appen share price keep going higher?
Brokers are mixed on whether the business is an opportunity or not.
Macquarie still thinks there is more downside to come, with a price target of just $5.70. That implies a decline of another 20% from where it is today. The broker wasn’t impressed by the FY21 result, which didn’t hit forecasts. The broker thinks that the company won’t be able to rise much.
However, Citi has a different view. It rates the company as a buy, with an Appen share price target of $9.15. Like Macquarie, it also noted that the lack of short-term guidance doesn’t inspire confidence.
In the recent FY21 result, Appen said that revenue rose 8% to $447.3 million. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) only grew by 3% to $77.7 million. Underlying net profit after tax (NPAT) was down 10.4% to $40.6 million.
By FY26, the company wants to at least double FY21’s revenue, improve the customer mix with one-third of revenue from non-global customers and achieve an EBITDA margin target of 20%.
The post Tech recovery? Appen share price jumps 4% higher appeared first on The Motley Fool Australia.
Should you invest $1,000 in Appen right now?
Before you consider Appen, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Appen wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
- These were the worst performing ASX 200 shares during the first quarter
- Why is the Appen (ASX:APX) share price surging 6% higher today?
- 3 ASX growth shares down more than 50% in a year
- Is the Appen (ASX:APX) share price on the comeback trail?
- How have ASX artificial intelligence shares been performing lately?
Motley Fool contributor Tristan Harrison owns Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium, Appen Ltd, Block, Inc., WiseTech Global, and Xero. The Motley Fool Australia owns and has recommended Block, Inc., WiseTech Global, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/oBvA6N7
Leave a Reply