Analyst Jason Bazinet of Citi maintained a Buy rating on AppLovin (APP – Research Report), retaining the price target of $600.00.
Jason Bazinet has given his Buy rating due to a combination of factors that highlight AppLovin’s potential for growth and resilience in the market. One key reason is the company’s strong response to bearish reports, emphasizing that their tools are effective, as evidenced by continued client usage despite overlaps with other platforms like Meta. This demonstrates confidence in AppLovin’s ability to deliver incremental sales for its clients.
Another significant factor is the promising growth in AppLovin’s eCommerce sector, with around 600 eCommerce customers onboarded and 80% of them scaling their spending. The company is exploring various avenues for expansion, including international growth and developing a robust AdTech solution for eCommerce. Although there are challenges such as staffing limitations, AppLovin is proactively addressing these by integrating AI agents to automate processes. Additionally, the company’s eCommerce ad model is expected to catch up with its more mature mobile gaming ad model, which suggests further potential for revenue growth.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $580.00 price target.
Based on the recent corporate insider activity of 106 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.
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