AppLovin initiated with an Overweight at Piper Sandler

Piper Sandler analyst James Callahan initiated coverage of AppLovin (APP) with an Overweight rating and $400 price target The shares have “appropriately re-rated” following an artificial intelligence–driven acceleration, but Piper still sees upside, the analyst tells investors in a research note. The firm says AppLovin’s technology has driven advertising revenue growth well above the market, and there is room to drive monetization and minute higher. On valuation, the shares trade slightly above the group average, but warrants a premium, contends Piper.