JPMorgan initiated AppFolio (NASDAQ:APPF) with an Overweight rating and a $200 per share price target in a note Thursday.

Analysts told investors in a note that the stock is an attractive play on U.S. residential real estate.

“APPF is deeply embedded in the real estate life cycle, as it provides cloud-based software and services to its participants,” analysts explained. “APPF connects property owners, real estate investment managers, rental prospects, residents, and service providers.”

“AppFolio operates only in the US and has >19k customers that manage >7.7M units on its platform. APPF is profitable, and its historic 3Y revenue CAGR of 28% has been driven by number of units on the platform and ARPU expansion,” they added.

Analysts concluded that AppFolio is among the faster-growing names across its vertical software coverage, adding that it is “already profitable and showing attractive operating leverage dynamic.”