5 big analyst AI moves: Apple lifted to Buy, AI chip bets reassessed
Investing.com - UBS raised its price target on AppLovin Corp (NASDAQ:APP) to $810.00 from $540.00 while maintaining a Buy rating on the stock. The company has demonstrated remarkable performance, with a 399% return over the past year and is currently trading at $639.91, near its 52-week high of $670.19.
The investment firm reiterated AppLovin as its top pick within its coverage universe, with an updated upside case of $1,000, representing potential upside of 56%. According to InvestingPro data, the company boasts a perfect Piotroski Score of 9, indicating exceptional financial strength. Get access to 20+ additional exclusive ProTips and comprehensive analysis with InvestingPro.
UBS expects AppLovin to execute on demand and supply expansion initiatives over the next 12 months that could improve the efficacy of Axon 2.0, potentially delivering estimate and multiple upside.
Post-second quarter checks with web-based advertisers suggest solid demand for AppLovin’s referral program and an opportunity to drive more awareness among agencies serving Fortune 1000 brands.
Mobile gaming checks did not indicate any challenges to AppLovin’s leadership position in the market, according to UBS’s analysis.
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 also exceeded expectations, coming in at $1.018 billion compared to the anticipated $996 million. Following these results, Benchmark maintained its Buy rating on AppLovin with a $525 price target. Jefferies, on the other hand, raised its price target to $615, citing growth in e-commerce advertising and new client onboarding as key drivers. BTIG also increased its price target to $664, highlighting expanding non-gaming revenue opportunities. Analyst Clark Lampen from BTIG forecasts non-gaming revenue to reach $531 million in the fourth quarter of 2025. Benchmark raised its price target to $640, emphasizing AppLovin’s next growth phase, including self-serve capabilities and international expansion. Jefferies reiterated its Buy rating, noting strong advertiser adoption with expected monthly spending comparable to Meta.
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