11 Best 52-Week Low Technology Stocks to Buy Now

5. AppFolio, Inc. (NASDAQ:APPF)

Potential Upside: 51.66%

Number of Hedge Fund Holders: 40

AppFolio, Inc. (NASDAQ:APPF) secured a $150 million senior secured revolving credit facility with PNC Bank on February 6. However, the loan comes with strict restrictions that could limit the company’s strategic and financial flexibility. These rules limit AppFolio, Inc. (NASDAQ:APPF) from taking on additional debt, making major investments, selling assets, granting liens, returning capital to shareholders, and engaging in certain transactions with affiliates. The facility also sets a limit on the company’s Consolidated Net Leverage Ratio. These limits could make it harder for the company to quickly respond to market changes or pursue growth opportunities. If the company fails to meet these requirements or misses a payment, it could cause a default. In that case, lenders could demand immediate repayment of all outstanding amounts and stop providing additional funding.

However, analysts remain optimistic despite the new credit facility’s restrictions, as the rating maintained on the same day suggests. On February 6, UBS analyst Seth Gilbert CFA reaffirmed a Buy rating on AppFolio, Inc. (NASDAQ:APPF), along with a price target of $260. The firm’s price target implies a further 47.797% upside from the current levels. This upside is consistent with the median Wall Street analyst’s upside of 52% among 8 analysts covering the stock.

AppFolio, Inc. (NASDAQ:APPF) operates as a provider of a cloud-based platform. The company offers its platform to the real estate industry across the United States. Its platform helps with marketing, accounting, maintenance, reporting, workflow automation, leasing, and communication services. It serves property investors, vendors,  potential residents, property managers, and residents.