AppLovin price target raised to $87 from $65 at BTIG

BTIG raised the firm’s price target on AppLovin to $87 from $65 and keeps a Buy rating on the shares. Investors remain focused on growth in the second half of the year, when the early phases of the Axon 2.0 launch will be lapped, and the firm believes that two items in particular are underappreciated – the remaining runway in the core gaming market and the steps AppLovin has taken to enhance their odds of success with eCommerce, the analyst tells investors in a research note. BTIG adds that with modest eCommerce ad market penetration and flat gaming share from FY25 forward, the firm also sees AppLovin sustaining low to mid-teens Software revenue growth, which should be “enough to exceed consensus expectations in the out year periods”.