Analyst James Heaney CFA from Jefferies maintained a Buy rating on AppLovin and increased the price target to $760.00 from $615.00.
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James Heaney CFA has given his Buy rating due to a combination of factors highlighting AppLovin’s growth potential. One key reason is the expected increase in monthly spending by Tierra Agency’s clients on AppLovin’s platform, which is projected to reach $3-5 million in Q4, showing significant sequential growth from the previous quarter. This growth is attributed to both new client acquisition and increased spending from existing customers.
Furthermore, the substantial demand for AppLovin’s referral program, which has attracted interest from large advertisers with significant annual media budgets, indicates a strong potential for client expansion. Additionally, AppLovin’s opportunity in lead generation advertising is seen as potentially three times larger than e-commerce, offering a scalable growth avenue. The anticipated expansion into international markets within the next 30 days also presents a promising opportunity for further growth, despite current limitations in market availability.
In another report released on September 15, BTIG also maintained a Buy rating on the stock with a $664.00 price target.