Jefferies analyst Andrew Uerkwitz maintained a Buy rating on AppLovin (APP – Research Report) today and set a price target of $70.00.
Andrew Uerkwitz has given his Buy rating due to a combination of factors including AppLovin’s exceptional fourth-quarter performance and promising first-quarter guidance. AppLovin’s platform, driven by its AXON technology and demand-side platform (DSP), has not only captured but also created market share in mobile gaming through effective ad targeting. The company’s first-quarter guidance suggests continued growth, leveraging the same drivers that have been effective over the past three quarters. This indicates sustained software growth throughout the year, with margins expected to remain around 70 percent. Uerkwitz has consequently raised the price target to $70 based on these heightened estimates.
The impressive growth in both user base and revenue per user highlights AXON 2.0’s success in enhancing targeting performance, which has led to an increase in advertiser budgets and a more robust holiday season performance for mobile games and apps. Additionally, the company’s strategic management of its first-party games is designed to optimize margins, keeping them open to acquisition opportunities in a favorable market. The anticipated year-over-year growth for the Software Platform, coupled with the ongoing advancements in targeting performance, suggests that AppLovin is poised for consistent quarter-over-quarter growth. This outlook, paired with AppLovin’s strategic investments in growth areas like Connected TV (CTV) and Original Equipment Manufacturer (OEM) markets, supports Uerkwitz’s positive assessment and the increased price target.
In another report released today, Macquarie also reiterated a Buy rating on the stock with a $88.00 price target.
See the top stocks recommended by analysts >>
Based on the recent corporate insider activity of 81 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of APP in relation to earlier this year.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
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.
Read More on APP:
