AppLovin stock initiated with Outperform rating by RBC Capital on ad-tech position

Published 13/10/2025, 22:14
AppLovin stock initiated with Outperform rating by RBC Capital on ad-tech position

Investing.com - RBC Capital initiated coverage on AppLovin Corp (NASDAQ:APP) with an Outperform rating and a $700.00 price target on Monday. The company, currently trading near $590, has demonstrated remarkable performance with a 288% return over the past year and maintains a perfect Piotroski Score of 9, according to InvestingPro data.

The research firm cited AppLovin’s strong positioning in the increasingly intertwined ad-tech and mar-tech sectors, where return on advertising spend (ROAS) and attribution are becoming more critical than formats and publishers. This strategic positioning has translated into impressive financial results, with the company achieving a robust 78.6% gross profit margin and 79% year-over-year revenue growth.

RBC Capital highlighted the expanded reach of AppLovin’s platform, which is diversifying its demand sources and unlocking growth opportunities in personalized marketing and retail media trends within e-commerce.

The firm expressed confidence that AppLovin’s fixed cost model can continue to deliver outsized growth throughout 2026, with margins expected to remain "best in class."

These factors collectively support RBC Capital’s Outperform rating and $700 price target for the company, according to the research note.

In other recent news, AppLovin has experienced several noteworthy developments. S&P Global Ratings upgraded AppLovin to a ’BBB’ from ’BBB-’ due to the company’s strong growth and improved competitive positioning. The company is projected to see a 65% revenue increase in 2025, followed by an additional 25% in 2026. Meanwhile, Oppenheimer has reiterated its Outperform rating on AppLovin, even as the Securities and Exchange Commission investigates the company’s data-collection practices. BofA Securities raised its price target for AppLovin to $860 from $580, maintaining a Buy rating after analyzing the company’s influence on direct-to-consumer eCommerce merchant websites. Additionally, Phillip Securities initiated coverage of AppLovin with an Accumulate rating, citing the company’s robust position in mobile games advertising. Piper Sandler also increased its price target to $740, expressing optimism about the launch of Axon Ads Manager. These updates collectively highlight the company’s current and anticipated growth trajectory.

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