Street Calls of the Week
Investing.com - Benchmark raised its price target on AppLovin Corp (NASDAQ:APP) to $640.00 from $525.00 on Monday, while maintaining a Buy rating on the mobile technology company. The stock, currently trading at $582, has delivered an impressive 79.72% return year-to-date and boasts a perfect Piotroski Score of 9 according to InvestingPro data.
The firm cited AppLovin’s entrance into its next growth phase, highlighting self-serve capabilities, e-commerce expansion, and international growth as key factors that will unlock a larger addressable market for the company. With robust gross profit margins of 78.61% and an "GREAT" overall financial health score, the company appears well-positioned for this expansion.
Benchmark noted that AppLovin’s recent addition to the S&P 500 enhances the company’s visibility and institutional ownership potential, while its expansion beyond gaming into e-commerce advertising represents a transformative growth catalyst.
The research firm specifically pointed to the early September international Ads Manager opening as a potential upside driver for AppLovin’s Q3 results, with incremental spending expected ahead of the October 1 self-serve launch.
Benchmark emphasized AppLovin’s sustained high-margin performance of 80%-85% AEBITDA margins, disciplined capital allocation with $5.5 billion in buybacks to date, and accelerating demand diversity as factors positioning the company for multi-year compounding growth.
In other recent news, AppLovin Corp reported strong second-quarter 2025 financial results, with revenue reaching $1.259 billion, surpassing consensus estimates of $1.219 billion. The company’s adjusted EBITDA also exceeded expectations, coming in at $1.018 billion compared to the forecasted $996 million. Following these results, Benchmark maintained its Buy rating and $525 price target on AppLovin. Additionally, JPMorgan raised its price target to $425 from $400, citing the company’s 9% sequential revenue growth, which exceeded its guidance. Piper Sandler also increased its price target to $500, maintaining an Overweight rating despite a decline in after-hours trading. BTIG and Jefferies both raised their price targets to $664 and $615, respectively, highlighting non-gaming revenue opportunities and e-commerce advertising growth as key drivers. These developments reflect analyst confidence in AppLovin’s future performance.
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