Analyst Matthew Cost of Morgan Stanley maintained a Buy rating on AppLovin, boosting the price target to $480.00.
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Forget margin or options. Here's how the pros trade APPMatthew Cost has given his Buy rating due to a combination of factors that highlight AppLovin’s strong performance and promising future prospects. The company has reported impressive second-quarter results, with revenue and EBITDA surpassing previous estimates by 4%. This growth is particularly notable following the divestiture of its first-party games business, as AppLovin achieved a 9% quarter-over-quarter increase in advertising revenue, exceeding its own targets. The consistent double-digit growth in ad supply managed through MAX and the potential expansion into non-gaming app inventories further bolster the company’s advertising capabilities.
Looking forward, the upcoming launch of the Axon Ads Manager on October 1st is seen as a pivotal development for AppLovin. This self-service portal is expected to streamline onboarding processes, expand the reach to non-gaming advertisers, and facilitate international market penetration. Additionally, the infrastructure laid out by this initiative is anticipated to support AI-generated ads and agentic support, positioning AppLovin for sustained growth. The company’s guidance for continued revenue growth in the third quarter further supports the positive outlook, making the Buy rating a reflection of both current achievements and future potential.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $580.00 price target.