In a report released today, James Heaney CFA from Jefferies maintained a Buy rating on AppLovin (APP – Research Report), with a price target of $530.00.
James Heaney CFA has given his Buy rating due to a combination of factors that highlight AppLovin’s potential for significant growth. The company has demonstrated an impressive 71% year-over-year increase in advertising revenue, and Heaney believes that the most rapid growth is yet to come. This optimism is fueled by AppLovin’s current penetration of only 0.1% of its total addressable market, suggesting substantial room for expansion, particularly with the introduction of self-serve tools that could streamline advertiser onboarding.
Furthermore, AppLovin’s gaming segment continues to be a major growth driver, contributing significantly to the company’s quarterly advertising revenue increase. Despite challenges such as a limited go-to-market team and potential macroeconomic disruptions, AppLovin’s limited exposure to China-based advertisers and its early stage in the growth cycle position it favorably compared to more established competitors. The potential rollout of self-serve tools and the company’s focus on product perfection are expected to further enhance its market position, leading Heaney to raise the price target to $530, reflecting a strong belief in the company’s future performance.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $420.00 price target.
Based on the recent corporate insider activity of 105 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.