AppLovin price target raised to $110 from $80 at Morgan Stanley

Morgan Stanley raised the firm’s price target on AppLovin to $110 from $80 and keeps an Equal Weight rating on the shares. AppLovin aims to grow its mobile game based ad business by 20%-30% over a multiyear period, notes the firm, which believes the company can only do this by either driving the majority of mobile game market growth in the future or rapidly scaling new verticals like e-commerce. While these paths are “plausible,” the firm says a lack of visibility and proof points leaves it “unwilling to underwrite them as a base case, as we await further evidence,” though it sees incremental upside, primarily coming from earnings revisions.