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Investing.com - Jefferies raised its price target on AppLovin Corp (NASDAQ:APP) to $615.00 from $560.00 on Thursday, while maintaining a Buy rating on the stock. The company, currently trading at $487.35 with a market capitalization of $164.85 billion, is trading above its InvestingPro Fair Value.
The firm cited multiple growth drivers behind an expected fourth-quarter e-commerce advertising inflection, including spend growth from existing advertisers, international audience expansion, and significant new client onboarding. This outlook aligns with AppLovin’s impressive 78.91% revenue growth and perfect Piotroski Score of 9, according to InvestingPro data, which offers 18 additional insights about the company’s performance.
Jefferies highlighted supply expansion into non-gaming apps and in-app purchase games as potentially meaningful growth opportunities for AppLovin, while noting the company should maintain its 80%+ EBITDA margin despite significant investment.
The research firm raised its Q4 2024 revenue estimate by 1%, positioning its forecast 8% ahead of consensus, with expectations of $375 million in web-based ad revenue, of which approximately $170 million would come from current advertisers.
Jefferies also increased its fiscal year 2026 revenue estimate by 2%, placing it 6% above street expectations, with an assumption of approximately $2 billion in net web ad revenue, which the firm still considers conservative.
In other recent news, AppLovin Corp reported strong financial results for the second quarter of 2025, with revenue reaching $1.259 billion, surpassing the consensus estimate of $1.219 billion. The company’s adjusted EBITDA was $1.018 billion, exceeding analyst expectations of $996 million. Following these results, several analyst firms have adjusted their outlooks on AppLovin. Benchmark maintained its Buy rating with a price target of $525, while Piper Sandler raised its price target to $500, highlighting a "solid beat" on earnings and a "strong guide" for future performance. JPMorgan also increased its price target to $425, maintaining a Neutral rating, and noted a 9% sequential revenue growth in the second quarter. Loop Capital reiterated its Buy rating with a $650 price target, emphasizing a 77% year-over-year revenue growth. UBS maintained its Buy rating and set a price target of $540, increasing its fiscal year 2026 EBITDA estimate to $6.18 billion due to favorable gaming-related trends. These developments indicate a positive analyst sentiment towards AppLovin’s recent performance and future prospects.
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