Morgan Stanley raised the firm’s price target on AppLovin (APP) to $460 from $420 and keeps an Overweight rating on the shares. The firm is bullish on the company’s plan to sell its first-party games business, or the apps segment, as it believes this would enhance shareholder value and be effectively neutral to future earnings. Such a sale would also effectively shift profits from the low multiple games business to the high multiple ad business, increasing the total value of the company, the analyst argues.
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