AppLovin price target raised to $385 from $181 at Loop Capital

Loop Capital analyst Rob Sanderson raised the firm’s price target on AppLovin (APP) to $385 from $181 and keeps a Buy rating on the shares after its Q3 earnings beat and above-consensus guide. The firm is adjusting its model with 30-times assumed EBITDA multiple vs. 17.5-times prior, adding however that it would not be surprised to see consolidation in the stock after such “rapid revaluation”. The analyst further notes that it may take time for investors to agree with Loop’s revised valuation assessment, stating that the firm would be “enthusiastic buyers” of any pullback in AppLovin shares.