AppLovin price target raised to $725 from $620 at Wedbush

Wedbush raised the firm’s price target on AppLovin (APP) to $725 from $620 and keeps an Outperform rating on the shares. The firm says AppLovin has repeatedly proven that its phenomenal growth will continue for the foreseeable future, and at a staggering profit margin. Wedbush expects the current year to benefit handsomely from ongoing momentum in gaming as AppLovin benefits from more players and increased spending on user acquisition, and layering in e-commerce. The firm further expects the user acquisition pie to continue growing, accelerated by the impact of the Apple (AAPL) vs. Epic case, likely becoming a tailwind for AppLovin next year. Wedbush views its current estimates as conservative, as a combination of e-commerce success and web store migration should drive significant growth for at least the next three years.

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