The Appen Ltd (ASX: APX) share price has been on fire over the last 30 days.
Since this time last month, the artificial intelligence data services company's shares have stormed 22% higher.
However, despite this impressive gain, the Appen share price is still down a whopping 47% since the start of the year.
Is the Appen share price still good value?
According to a recent note out of Bell Potter, its analysts believe the Appen share price may have peaked for the time being.
The note reveals that the broker has a hold rating and $13.50 price target on the company's shares. This compares to the latest Appen share price of $13.55.
Bell Potter has a few concerns over its long term growth potential after recent updates and sees no short term catalysts that will drive a re-rating of its share price. Particularly given that its shares are already trading at 35x estimated FY 2021 earnings and 11x estimated FY 2022 EBITDA.
Is anyone more positive?
It is worth noting that there are at least a couple of brokers that are more positive on the Appen share price.
One of those is Ord Minnett. Late last month the broker put a buy rating and $24.75 price target on its shares. This price target implies potential upside of approximately 83% over the next 12 months.
Ord Minnett was pleased with Appen's reorganisation plans and its earnings guidance confirmation for FY 2021.
In respect to its reorganisation, Appen is restructuring its business to align to its product-led growth strategy and distinct customer propositions. This will see the company operate with four customer-facing business units – Global, Enterprise, China, and Government. Management expects the changes will provide greater visibility of the drivers and performance of the business.
As for its guidance, Appen reiterated that it expects to achieve underlying EBITDA of US$83 million to US$90 million in FY 2021. This represents constant currency growth of 18% to 28% year on year.
Time will tell which broker makes the right call.
