The Appen Ltd (ASX: APX) share price has been a strong performer on Thursday.
In afternoon trade, the artificial intelligence (AI) data services company's shares are up 6% to $9.31.
However, despite this strong gain, Appen's shares are still down a disappointing 63% since the start of the year.
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Could the Appen share price rebound to $17 by Christmas?
Positively for shareholders, one leading broker believes Appen shares could rise materially from here.
According to a note out of Citi this week, its analysts have retained their buy rating and $17 price target. Based on the current Appen share price, this implies a massive upside of 82% for investors.
In light of this, Citi appears to see potential for Appen to trade at that level at Christmas. Though, it is worth noting that this price target is for the next 12 months.
Why is Citi bullish?
While the broker acknowledges that trading conditions have been tough recently, which explains why Appen's shares are performing so poorly this year, it remains positive about the long term outlook.
Citi sees Appen as well-placed to benefit from the higher spending on artificial intelligence. It also expects Appen to leverage its increased capabilities and expand its addressable market.
The broker has previously noted that its industry discussions suggest demand for human-annotated training data is not structurally impaired.
It also previously suggested that the company could become a takeover target if its shares stay this low for much longer.
Citi highlights that rival Lionbridge was acquired by Telus on much higher multiples than those of the Appen share price today.
All in all, this could make Appen one to watch over the coming months.
