AppLovin price target raised to $470 from $455 at Piper Sandler

Investing.com - Piper Sandler raised its price target on AppLovin Corp (NASDAQ:APP) to $470 from $455 on Thursday, while maintaining an Overweight rating on the software company’s stock. The company, which has delivered an impressive 321% return over the past year and maintains robust gross profit margins of 78%, currently trades near $339. According to InvestingPro analysis, analyst targets range from $250 to $650.

The research firm cited continued strength in AppLovin’s total supply growth according to sellers.json data, despite noting some mixed trends in its proprietary analysis of the company’s supply-side metrics.

Piper Sandler observed weakness in mobile gaming trends since April, but attributed this primarily to changes at a single studio that also affected AppLovin’s competitors rather than fundamental issues with the company’s business model.

The firm updated its financial estimates to fully remove Apps from its projections through the second quarter of 2025, as this segment will be reported as discontinued operations going forward.

AppLovin’s share of new SDK ( Software (ETR:SOWGn) Development Kit) additions decreased during the second quarter, but Piper Sandler explained this was largely due to gains from AdMob, which primarily serves non-gaming customers.

In other recent news, AppLovin Corp has been the focus of several significant developments. Morgan Stanley (NYSE:MS) has raised its price target for AppLovin to $460, maintaining an Overweight rating, based on the company’s plan to sell its apps segment, which is expected to enhance shareholder value and remain neutral to future earnings. Meanwhile, Oppenheimer analysts have reiterated an Outperform rating with a $500 price target, expressing confidence in AppLovin’s growth outlook and market share in the near and medium term. Jefferies has also maintained a Buy rating, setting a price target of $530, with an upcoming expert call to discuss AppLovin’s advertising performance compared to Meta (NASDAQ:META) and Google (NASDAQ:GOOGL). Additionally, BTIG has increased its price target to $480, maintaining a Buy rating, following AppLovin’s announcement of the expected sale of its first-party mobile games business to Tripledot Studios. This strategic move is anticipated to streamline AppLovin’s business structure and focus on its core advertising operations. Despite lowered revenue and EBITDA forecasts due to the sale, BTIG continues to view AppLovin as a Top Pick. These recent developments underscore the company’s strategic shifts and the varied analyst perspectives on its future trajectory.

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