As a result, the stock was up 8.9% as of 11:24 a.m. EDT on Thursday.
Hedgeye said it sees "product and market demand upside of 3x over time as low-code goes from marginal to mainstream, and as APPN goes from #2 to clear #1." The leader that Hedgeye is referring to is probably Microsoft, though Appian is considered the leading independent, low-code platform.
Hedgeye also said that Appian is making smart moves on pricing, community growth, and partner integration to boost user growth. The research firm will host a presentation on Appian on Monday to further explain its bull case for the stock.
Appian stock has been all over the map since last November as shares charged higher after a strong third-quarter earnings report and what appeared to be an extended short squeeze. After reaching a top at $260 a share in February, the stock is down by about 50% even with today's gains.
Still, analysts seem to be taking notice of the company's momentum in its high-margin, cloud-subscription business as it pivots away from professional services revenue. Last week, the stock was upgraded by Macquarie, and while shares are still pricey at a price-to-sales ratio of 25, Appian appears to have a bright future as the pandemic helped highlight the advantages of low-code software.
Hedgeye's presentation on Monday could move the stock again.