BofA analyst Omar Dessouky raised the firm’s price target on AppLovin (APP) to $210 from $120 and keeps a Buy rating on the shares. The firm believes that the launch of Axon 2.0, AppLovin’s AI engine, in Q2 of 2023 ushered in a growth and profitability transformation, which the “markets and the Street have been slow to recognize,” the analyst told investors in a research note earlier. The firm, which re-envisions AppLovin as a growth stock, raised its calendar year 2025 and 2026 Software topline growth estimates by 600 and 300 basis points, respectively, based on increased confidence in the core business of mobile game ads and raised the valuation multiple the firm applies to its calendar year 2026 EBITDA estimate.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on APP:
- Jefferies Analysts Raise Price Target on AppLovin Stock (NASDAQ:APP) by 62%
- Morning Movers: Longboard Pharmaceuticals surges following deal to be acquired
- AppLovin downgraded to Neutral from Buy at Goldman Sachs
- AppLovin (NASDAQ:APP) Stock Skyrockets 242% on Growth and AI Potential
- AppLovin price target raised to $110 from $80 at Morgan Stanley