Top analysts at Benchmark and BTIG boosted their price targets for AppLovin (APP) stock and reaffirmed a Buy rating, reinforcing their bullish stance on the artificial intelligence (AI)-powered mobile ad-tech platform. Benchmark analyst Mike Hickey increased his price target for AppLovin stock to $640 from $525, reiterating that it is a Top Idea. Likewise, BTIG analyst Clark Lampen raised the price target to $664 from $547 and stated that APP stock remains a Top Pick. Let’s look at the reasons for the bullish outlooks of these two analysts.
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Benchmark Raises APP Stock Price Target on Solid Momentum
Hickey raised his price target, noting that AppLovin is entering its next phase of growth, with its self-serve ad model, e-commerce, and international expansion set to open up a significantly larger addressable market. The company is scheduled to launch its self-serve ad model on October 1, initially on a referral basis. Hickey views this offering as the most significant near-term catalyst for increasing the advertiser count. He expects AppLovin to benefit from the rollout of its Ads Manager and self-serve ad model to international advertisers.
The 5-star analyst also expects expansion of AppLovin beyond gaming into e-commerce advertising to be a “transformative growth catalyst.” Hickey highlighted that AppLovin is already the third-largest U.S. e-commerce ad platform, with about a 4% market share compared to social media company Meta Platforms (META) at nearly 70% and Alphabet’s (GOOGL) Google at 20%. Also, with only 5% to 10% of potential advertisers onboarded, Hickey believes that there is significant potential for further growth. Additionally, he noted that the $100 billion mobile in-app purchase market represents a major new supply source, as publishers integrate ads alongside purchases.
Hickey also expects AppLovin’s addition to the S&P 500 (SPX) to boost visibility and institutional ownership. He added that APP is well-positioned for multi-year compounding growth based on a combination of sustained high-margin performance (80% to 85% adjusted EBITDA margins), disciplined capital allocation ($5.5 billion stock buybacks to date), and growing demand diversity.
BTIG Is Upbeat About APP Stock
Lampen raised his price target and estimates to reflect AppLovin’s non-gaming revenue opportunity in Q4 2025 and 2026, as well as the long-run addressable market opportunity related to general audience expansion in the first half of next year.
The 5-star analyst also expects supply expansion and model upgrades to drive his 2026 revenue estimates higher.
Is APP Stock a Good Buy?
With 15 Buys and three Holds, Wall Street has a Strong Buy consensus rating on AppLovin stock. The average APP stock price target of $538.94 indicates 9.1% downside risk. APP stock has rallied 83% year-to-date.
