AppLovin price target raised to $860 from $580 at BofA

BofA raised the firm’s price target on AppLovin (APP) to $860 from $580 and keeps a Buy rating on the shares. After having visited about 400 direct-to-consumer e-commerce merchant websites that advertise using AppLovin, the firm now forecasts $3B of e-commerce net revenue in calendar year 2026 on $7B ad spend, based only on verticals with the best fit for mobile game ads. Using disclosures from Shopify (SHOP) and third-party market research, the firm now forecasts 4,000 large advertisers will adopt AppLovin as a new channel, the analyst explains.