Analyst Clark Lampen of BTIG maintained a Buy rating on AppLovin (APP – Research Report), with a price target of $65.00.
Clark Lampen has given his Buy rating due to a combination of factors that indicate a strong capital allocation strategy and potential for equity value growth in AppLovin. The recent secondary offering and share repurchase transaction are seen as positive developments that could lead to further capital returns to shareholders throughout the year, whether through additional buybacks or debt reduction. Lampen views the continued investment by one of AppLovin’s largest and long-standing shareholders as a sign of confidence in the company’s growth prospects, particularly as it explores new non-gaming opportunities, which reinforces the positive outlook.
Furthermore, Lampen’s report suggests that AppLovin has substantial room to grow within its core gaming market, where it currently holds less than 20% market share. The company’s foray into the non-gaming sector, specifically ecommerce, is poised to leverage AppLovin’s data assets and proven strategies to tap into a market that is double the size of gaming. Early results in this new venture have been promising, and significant contributions to the company’s revenue are expected in the near future. Lampen’s valuation reflects an anticipation of sustained revenue growth and margin expansion, supported by a detailed analysis of AppLovin’s financial projections and market opportunities.
In another report released on February 29, Wedbush also maintained a Buy rating on the stock with a $67.00 price target.
APP’s price has also changed dramatically for the past six months – from $43.190 to $61.870, which is a 43.25% 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.
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