AppLovin price target raised to $400 from $270 at Jefferies

Jefferies analyst James Heaney raised the firm’s price target on AppLovin (APP) to $400 from $270 and keeps a Buy rating on the shares. Positive checks on AppLovin’s e-commerce product pilot, including one with the Snow Agency, give the firm the confidence to raise its FY24- FY28 ad revenue estimates, the analyst tells investors. While “still early,” the firm’s checks show that AppLovin’s e-commerce product is already driving Meta-like (META) return on ad spend at scale, notes the analyst, who adds that the Snow Agency said it believes that AppLovin could eclipse Alphabet (GOOG) (GOOGL) in its budget allocation mix in 2025.