What happened
Shares of Appian (APPN 0.19%), a low-code application platform, fell today after two analysts lowered their price targets for the tech stock.
While both analysts maintained their buy rating for Appian, the price target cuts follow the disappointing third-quarter results Appian reported last week.
Appian's share price was down 5.2% as of 2:43 p.m. ET.
So what
Truist analyst Joe Meares lowered his price target for Appian's stock to $50, down from his previous price of $65. Meares said that Appian's revenue in the third quarter was below his expectations and he is now modeling Appian's fiscal 2023 revenue to be $539 million -- down from his previous estimate of $558 million.
Meares says macroeconomic headwinds could affect the company's sales, though he remains bullish on the stock and maintained his buy rating for Appian's shares.
His comments came at the same time Goldman Sachs lowered its price target for Appian's shares from $71 to $55, but the firm is also maintaining its buy rating on the stock.
Appian reported its third-quarter results last week, with revenue of $117.9 million outpacing analysts' consensus estimate of $116.1 million in the quarter. But the company's bottom line disappointed investors.
Appian's non-GAAP (adjusted) loss per share of $0.43 was far worse than Wall Street's average estimate of a loss of $0.23 per share.
Now what
Technology investors are extra sensitive to any seemingly negative news right now and Appian's shareholders are no exception.
Even though the two investment firms maintained their buy ratings for Appian today, investors didn't like that the company's shares received two price target cuts. When combined with Appian's disappointing third quarter, it's not all that surprising to see the company's share price drop today.
