Street Calls of the Week
Investing.com - BTIG raised its price target on AppLovin Corp (NASDAQ:APP) to $664.00 from $547.00 on Monday, while maintaining a Buy rating on the stock. The company, currently trading at $582 with a market capitalization of nearly $197 billion, has demonstrated impressive financial health with a perfect Piotroski Score of 9, according to InvestingPro data.
The research firm cited expanding non-gaming revenue opportunities as the primary driver for the increased target, with analyst Clark Lampen forecasting $531 million in non-gaming revenue for the fourth quarter of 2025, up from a previous estimate of $369 million. This optimism appears well-founded, given AppLovin’s strong revenue growth of 79% and impressive gross profit margins of 79% in the last twelve months.
For 2026, BTIG now projects $2.580 billion in non-gaming revenue, compared to its earlier forecast of $2.129 billion, expecting quarter-over-quarter growth from Q4 2025 as new marketer cohorts onboard and gradually increase spending.
The firm noted that with referral-based onboarding set to begin in less than a month, its revised forecasts incorporate assumptions for seasonality, international reach expansion, and benefits from the referral program.
BTIG identified potential additional tailwinds to its 2026 revenue estimates, including supply expansion and model upgrades, while reaffirming AppLovin as a "BTIG Top Pick."
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 anticipated $996 million. This performance led several firms to adjust their price targets for AppLovin. Jefferies increased its target to $615, citing growth drivers like international expansion and new client onboarding. Piper Sandler raised its target to $500, maintaining an Overweight rating despite a drop in share price after hours. JPMorgan also adjusted its target to $425, highlighting a 9% sequential revenue growth in Q2. Loop Capital reiterated its Buy rating and set a $650 price target, noting a 77% year-over-year revenue growth and a 95% increase in adjusted EBITDA. Benchmark maintained its Buy rating with a $525 price target following the strong Q2 results.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.