AppLovin price target raised to $40 from $34 at BTIG

BTIG analyst Clark Lampen raised the firm’s price target on AppLovin to $40 from $34 and keeps a Buy rating on the shares. The company’s Q2 marked another significant beat of consensus expectations, with strong flow through in the business and improved operating expense leverage across the board resulting in a notable EBITDA outperformance, the analyst tells investors in a research note. AppLovin is an important partner for independent developers in their core mobile gaming market, and while that end market is in transition, there is room for the company to outperform the sector and peers amidst the rollout of the Axon 2.0 algorithm update, the firm added.