AppLovin upgraded to Buy from Neutral at BTIG

BTIG analyst Clark Lampen upgraded AppLovin to Buy from Neutral with a $34 price target ahead of the company’s earnings. The setup for the company’s Software business is improving in the early stages of the Axon 2.0 product cycle as its management has highlighted an improving growth marketing environment with clients leaning back into spend following Q1 results, the analyst tells investors in a research note. The firm further notes that its late June checks subsequently pointed to ROAS rates running at “teens+” levels with only basic utilization of AppDiscovery’s event modeling capabilities. AppLovin also expects their 1P games business to stabilize after several quarters of restructuring-related headwinds and sequential revenue decline, BTIG added.