Bank of America Securities analyst Omar Dessouky has reiterated their bullish stance on APP stock, giving a Buy rating today.
Omar Dessouky has given his Buy rating due to a combination of factors that highlight AppLovin’s strong market position and growth potential. The company is poised to continue its exceptional financial performance, with profit margins and long-term growth forecasts surpassing most of its peers in the adtech and AI sectors. AppLovin is transforming the mobile gaming industry into a new e-commerce advertising platform, with significant merchant engagement validating its return on ad spend and scale propositions.
Moreover, AppLovin’s CEO has addressed and clarified inaccuracies in short seller reports, reinforcing the company’s commitment to fair auction practices and transparency. The company’s robust transactional data scale, which is twice that of its nearest competitor, positions it as a leader in mobile game advertising. Despite a recent drop in share price, Dessouky believes that AppLovin’s valuation should be at a premium compared to its peers, given its projected EBITDA growth rate and the potential for valuation discounts to diminish as the market becomes more familiar with its operations.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $575.00 price target.