Analyst Jason Bazinet from Citi maintained a Buy rating on AppLovin (APP – Research Report) and increased the price target to $98.00 from $80.00.
Jason Bazinet has given his Buy rating due to a combination of factors which include AppLovin’s recent financial performance and the firm’s future outlook. Bazinet’s analysis indicates that AppLovin’s revenue and adjusted EBITDA have surpassed expectations, leading to an adjustment in their financial model. The revised model reflects a more optimistic perspective, given the company’s strong quarterly results and guidance indicating continued growth. Additionally, the upward revision of the target price from $80 to $98 underscores a confidence in the firm’s valuation and future cash flows.
Bazinet’s recommendation also stems from AppLovin’s attractive growth prospects and solid margin profile, which he believes are not fully appreciated in the current market valuation. By applying a forward price-to-free-cash-flow multiple of approximately 20 times, Bazinet signals that the stock presents a compelling buy opportunity. The maintenance of the Buy rating, despite the price target increase, suggests that the analyst sees sustained potential in the company’s abilities to outperform market expectations and deliver value to investors.
In another report released yesterday, Bank of America Securities also reiterated a Buy rating on the stock with a $100.00 price target.
APP’s price has also changed dramatically for the past six months – from $39.680 to $84.690, which is a 113.43% increase.
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AppLovin (APP) Company Description:
AppLovin Corp is a mobile app technology company. It focuses on growing the mobile app ecosystem by enabling the success of mobile app developers. The company’s software solutions provide advanced tools for mobile app developers to grow their businesses by automating and optimizing the marketing and monetization of their apps.
