The recent performance of Appen Ltd (ASX: APX) shares would likely be a tough pill for investors to swallow. The S&P/ASX 200 Index (ASX: XJO) tech company and go-to AI stock has slumped some 60% from its August 2020 highs of $43.66 following multiple weak earnings reports and business headwinds.
An Appen share price comeback?
Citi has made a bold call on Friday, rating the Appen share price as a buy with a $30.90 target price. This represents an upside of approximately 82% from its current level of $16.97.
The upside and valuation re-rate comes after the recent capital raising by Appen peer, Scale AI. Citi believes that this is an overall positive for Appen, showing solid growth in the AI training data industry.