AppLovin price target raised to $120 from $100 at BofA

BofA analyst Omar Dessouky raised the firm’s price target on AppLovin to $120 from $100 and keeps a Buy rating on the shares. After having met with AppLovin’s CEO and CFO in New York, the stock remains the analyst’s top pick, citing the thesis that the Software segment can grow at high rates of greater than 20% year-over-year at least through calendar year 2026 in a mobile gaming end market that currently grows 5%-10% year-over-year, the analyst tells investors. The firm’s raised target is based on a higher multiple applied to the firm’s new calendar year 2025 EBITDA estimate of $3.2B, which reflects greater confidence in sustained growth within the gaming end market and acceleration driven by e-commerce.