AppLovin, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst James Heaney CFA from Jefferies maintained a Buy rating on the stock and has a $800.00 price target.
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James Heaney CFA has given his Buy rating due to a combination of factors highlighted by the insights from key industry players. The report indicates that AppLovin is increasingly becoming a preferred platform for advertisers, with significant ad budget allocations from companies like GR0, Scentbird, and 365 Holdings. These companies have noted that AppLovin provides a strong return on ad spend (ROAS), often outperforming other platforms like Snapchat and Pinterest.
Moreover, the platform is seen as an effective channel for acquiring new customers, with a substantial portion of traffic being incremental. The positive feedback from these advertisers, who are experiencing growth in their ad spend on AppLovin, suggests a promising outlook for the platform. This combination of high ROAS and customer acquisition potential underpins James Heaney’s positive outlook and Buy rating for AppLovin’s stock.
In another report released yesterday, Bank of America Securities also reiterated a Buy rating on the stock with a $860.00 price target.
Based on the recent corporate insider activity of 116 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.