Jason Bazinet, an analyst from Citi, maintained the Buy rating on AppLovin. The associated price target remains the same with $600.00.
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Jason Bazinet has given his Buy rating due to a combination of factors that highlight AppLovin’s growth potential and strategic positioning. The company’s management has identified opportunities to expand their market share by addressing the limitations of current market share figures, which they believe understate AppLovin’s actual presence. By adjusting for factors such as the scope of third-party budgets and the geographical focus of their pilot programs, AppLovin anticipates a larger market share as they expand their customer base beyond the US.
Furthermore, AppLovin’s ability to drive eCommerce purchases quickly after ad exposure is a significant advantage, with a high percentage of customers making purchases within a short time frame. This quick conversion rate, combined with the company’s expansion into non-gaming eCommerce verticals, suggests a promising growth trajectory. Management’s belief in the non-zero-sum nature of the market and the potential for ad revenue from mobile games that traditionally rely on in-app purchases further supports the positive outlook. These factors collectively contribute to the expected share price return of 22.4%, reinforcing the Buy rating.
According to TipRanks, Bazinet is a 5-star analyst with an average return of 18.3% and a 65.84% success rate. Bazinet covers the Communication Services sector, focusing on stocks such as AppLovin, TKO Group Holdings, and Spotify.
In another report released on September 4, Jefferies also maintained a Buy rating on the stock with a $615.00 price target.