BofA update shows where active managers are putting money
Investing.com - Piper Sandler raised its price target on AppLovin Corp (NASDAQ:APP) to $500 from $470 while maintaining an Overweight rating on the stock. The company, which boasts impressive gross profit margins of 78.6% and has delivered a remarkable 481% return over the past year, continues to attract analyst attention. InvestingPro data shows the company maintains a perfect Piotroski Score of 9, indicating exceptional financial strength.
The research firm’s decision comes despite AppLovin shares declining in after-hours trading following what Piper Sandler described as a "solid beat" on earnings and "strong guide" for future performance.
Piper Sandler highlighted that AppLovin is set to release a referral-based self-serve E-Commerce tool in early October 2025, with a full general availability launch planned for the first half of 2026.
The firm noted continued strength in AppLovin’s gaming business despite what it characterized as a seasonally weaker second quarter period, and sees potential for "multiple years of revenue tailwinds" from new verticals.
Piper Sandler’s price target increase reflects higher estimates while maintaining a multiple of approximately 30 times expected 2026 EBITDA.
In other recent news, AppLovin Corp reported strong second-quarter earnings, exceeding expectations with a 9% sequential revenue growth, surpassing its guidance of 3-5%. The company also achieved a 77% year-over-year revenue growth, marking a 600 basis point acceleration and exceeding consensus estimates by 300 basis points. Adjusted EBITDA grew 95% year-over-year, showing nearly 400 basis points of acceleration and also surpassing consensus by 300 basis points. Loop Capital reiterated its Buy rating with a $650 price target, while UBS maintained its Buy rating and increased its fiscal year 2026 EBITDA estimate to $6.18 billion, above the Street consensus. BTIG raised its price target to $547, highlighting the launch and expansion of AppLovin’s self-serve ad product, "Axon Ads Manager." Goldman Sachs increased its price target to $445, citing strong advertising revenue performance following the divestment of its Apps business. JPMorgan also raised its price target to $425, maintaining a Neutral rating. These developments reflect positive analyst sentiment and strategic advancements for AppLovin.
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