The Appen Ltd (ASX: APX) share price is currently up by 4%.
Looking at the S&P/ASX 200 Index (ASX: XJO), many of the leading performers today are tech names.
For example, the Block Inc (ASX: SQ2) share price is up 6.7%, the Xero Limited (ASX: XRO) share price is up 4.2%, the Altium Limited (ASX: ALU) share price is up 4.2% and the WiseTech Global Ltd (ASX: WTC) share price is up 3.4%.
While the Appen share price is currently up by 4% today and 6% over the last month, it is still down significantly in 2022. In the calendar year to date, Appen shares currently register a decline of 36%.
Can the Appen share price keep going higher?
Brokers are mixed on whether the business is an opportunity or not.
Macquarie still thinks there is more downside to come, with a price target of just $5.70. That implies a decline of another 20% from where it is today. The broker wasn't impressed by the FY21 result, which didn't hit forecasts. The broker thinks that the company won't be able to rise much.
However, Citi has a different view. It rates the company as a buy, with an Appen share price target of $9.15. Like Macquarie, it also noted that the lack of short-term guidance doesn't inspire confidence.
In the recent FY21 result, Appen said that revenue rose 8% to $447.3 million. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) only grew by 3% to $77.7 million. Underlying net profit after tax (NPAT) was down 10.4% to $40.6 million.
By FY26, the company wants to at least double FY21's revenue, improve the customer mix with one-third of revenue from non-global customers and achieve an EBITDA margin target of 20%.
