What happened

Shares of Appian (NASDAQ:APPN) have dipped by as much as 5% after a Wall Street analyst reiterated a neutral view on the company. Cowen maintained a "market perform" (equivalent to neutral) rating on Appian while analyst Derrick Wood adjusted his price target from $83 to $175. The tweak comes as the broader market is selling off, with tech stocks getting hit particularly hard.

So what

The analyst notes that Appian shares have experienced a "profound" rerating, as the stock had nearly tripled since Appian reported third-quarter results in November. That has created some concerns around the company's valuation, in Wood's view.

Red stock chart going down

Image source: Getty Images.

"Fundamentals are solid, but there have not been any major new developments & we think short squeeze dynamics are at play," Wood wrote in a research note to investors. "Valuations seem stretched which we feel creates more downside risks."

Now what

Appian is scheduled to report fourth-quarter results tomorrow  after the close. The company's guidance calls for total revenue in the range of $73 million to $74 million, of which $35 million to $35.5 million should be cloud subscription revenue. Adjusted EBITDA is forecast at negative $10 million to negative $11 million. Adjusted net loss per share is expected to be $0.16 to $0.18 per share. The consensus estimate currently sits at $74 million in sales and an adjusted net loss of $0.17 per share.

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