Clark Lampen, an analyst from BTIG, maintained the Buy rating on AppLovin. The associated price target was raised to $483.00.
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Clark Lampen has given his Buy rating due to a combination of factors including positive performance indicators and strategic positioning in the gaming sector. The decision to raise estimates for AppLovin’s revenue and EBITDA is based on stronger-than-expected gaming checks and largely favorable non-gaming feedback. Despite recent underperformance compared to the S&P, Lampen believes the concerns affecting AppLovin’s stock are largely unfounded.
The company’s leadership position in the gaming market has been maintained or improved, with indications of growth outpacing peers. Feedback suggests improvements in cost per install and returns, contributing to a positive outlook. Additionally, while some concerns were noted regarding new user acquisition, the overall customer base remains strong, with plans to expand spending on AppLovin’s Audience+ program. These factors, combined with a strategic approach to onboarding new marketers, support the Buy rating and a price target of $483.
Lampen covers the Communication Services sector, focusing on stocks such as Roblox, Genius Sports Limited, and fuboTV. According to TipRanks, Lampen has an average return of 37.2% and a 62.50% success rate on recommended stocks.
In another report released yesterday, Benchmark Co. also maintained a Buy rating on the stock with a $525.00 price target.