Analyst Matthew Cost of Morgan Stanley maintained a Buy rating on AppLovin (APP – Research Report), boosting the price target to $420.00.
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Matthew Cost has given his Buy rating due to a combination of factors that highlight AppLovin’s strong market position and growth potential. The company’s core gaming ad product has shown impressive execution, leading to significant revenue and EBITDA growth. This success is further bolstered by the company’s advancements in non-gaming products, which have already contributed substantially to revenue in their early stages.
Cost also notes that AppLovin’s strategic investments in core technology and new product testing, such as automated ad creative and a self-serve dashboard, are expected to unlock further demand. Despite potential challenges from tariff headwinds affecting non-gaming advertisers, management’s confidence in their outlook for 2025 and beyond reinforces the positive sentiment. Consequently, Cost has raised the EBITDA estimates and increased the price target, reflecting the anticipated continued momentum and market share gains.
Cost covers the Communication Services sector, focusing on stocks such as Electronic Arts, Yelp, and Zillow Group Class C. According to TipRanks, Cost has an average return of -5.0% and a 53.95% success rate on recommended stocks.