KeyBanc has reduced its price objective for Amplitude Inc. (AMPL) to $14 from $16, while leaving its Overweight rating intact. The updated target implies substantial upside from the stock s recent trading level of $7.18, and InvestingPro data identifies the share price as slightly undervalued on its Fair Value assessment.
The research note underlined a consistent improvement in the company s annual recurring revenue (ARR) growth, which has accelerated for six consecutive quarters. According to KeyBanc s characterization, ARR growth moved from 8.2% to 17.3% as Amplitude exited 2025. That acceleration forms part of a broader top-line trend: the company s revenue has expanded 12.78% over the last twelve months.
Despite revenue momentum, KeyBanc flagged margin performance as a central concern. The firm described Amplitude s margin level and expansion as stubbornly low and said it expects margins to stay depressed for another year. The company reported a gross profit margin of 73.96%, but remains unprofitable on an earnings basis, with trailing twelve-month earnings per share at -$0.79.
The analyst framed Amplitude as a case that may reveal investor preferences: the company is delivering accelerating growth while maintaining margins that some investors find unacceptably low. KeyBanc said it continues to value the rarity of accelerating growth even as it adjusted its target downward using peer multiples.
Several other brokerages and corporate developments were also noted. Amplitude announced the acquisition of InfiniGrow, an AI marketing analytics firm, which the company says will help make analytics more actionable for marketers by improving measurement, forecasting, and optimization of marketing impact on revenue.
On the coverage front, Morgan Stanley upgraded Amplitude s rating from Equalweight to Overweight and raised its price target to $16.00, pointing to potential benefits from generative AI for accelerating mobile and web application development. Separately, BTIG initiated coverage with a Buy rating and set a $14.00 price target, emphasizing Amplitude s leadership in product analytics and noting platform expansion into experimentation, marketing analytics, and session replay.
Collectively, the notes and strategic moves signal both continued confidence in Amplitude s growth trajectory and ongoing questions about when the company will translate that growth into sustainable margin expansion and profitability.