Analyst Omar Dessouky from Bank of America Securities reiterated a Buy rating on AppLovin (APP – Research Report) and keeping the price target at $580.00.
Omar Dessouky has given his Buy rating due to a combination of factors that highlight AppLovin’s potential for growth and value. The company is transforming its mobile gaming platform into a significant channel for eCommerce advertisers, which is expected to drive substantial revenue growth. The anticipated launch of a self-serve platform for smaller eCommerce merchants and a managed service for larger advertisers in Europe and Asia are not yet fully reflected in current market expectations, providing potential upside.
Furthermore, Dessouky notes that the company’s advertising revenue expectations for the first quarter of 2025 are high but achievable, with the potential to exceed guidance. This is supported by an increase in eCommerce advertisers and a model enhancement that could drive additional growth. The valuation remains attractive, with shares appearing inexpensive relative to future earnings growth, justifying the Buy rating and a price objective of $580.
According to TipRanks, Dessouky is a 5-star analyst with an average return of 23.4% and a 48.91% success rate. Dessouky covers the Communication Services sector, focusing on stocks such as Roblox, Electronic Arts, and Take-Two.
In another report released on April 22, Jefferies also maintained a Buy rating on the stock with a $460.00 price target.