At first glance, Citi says Amazon’s entry into the fully managed data-labeling service space appears negative for Appen in terms of additional required investment and overall competition.
However, Citi says Amazon’s entry also indicates continuing demand for Appen’s services, despite concerns about self-learning systems.
While there may be more competition in the Enterprise space, competition with the company’s major technology customers shouldn’t be impacted, according to Citi. Buy rating and $17.10 target price are retained.
Sector: Software & Services.
Target price is $17.10.Current Price is $9.22. Difference: $7.88 – (brackets indicate current price is over target). If APX meets the Citi target it will return approximately 46% (excluding dividends, fees and charges – negative figures indicate an expected loss).
