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Investing.com - BofA Securities has raised its price target on AppLovin Corp (NASDAQ:APP) to $860.00 from $580.00 while maintaining a Buy rating on the stock. The company, currently trading near its 52-week high with a remarkable 122% year-to-date return, has demonstrated exceptional financial health with a perfect Piotroski Score of 9, according to InvestingPro data.
The price target increase follows BofA’s analysis of approximately 400 direct-to-consumer eCommerce merchant websites that use AppLovin for advertising, which helped the firm better understand which product categories sell successfully to mobile gamers.
BofA now forecasts $3 billion in eCommerce net revenue for AppLovin in calendar year 2026 on $7 billion in advertising spend, focusing specifically on verticals with the best fit for mobile game advertisements: Apparel, Beauty & Fitness, Home & Garden, and Health & Wellness.
The new forecast assumes 4,000 large advertisers will adopt AppLovin as a new channel, with BofA triangulating its forecast using disclosures from Shopify and third-party market research.
BofA noted that potential adoption by merchants with less than $10 million in gross merchandise value, of which there are tens of thousands, represents upside to their model, along with categories beyond those specifically enumerated in their analysis.
In other recent news, AppLovin Corp has been the focus of several analyst updates and developments. UBS has raised its price target for AppLovin to $810 from $540, maintaining a Buy rating and highlighting the company as its top pick within its coverage universe. Piper Sandler also increased its price target to $740 from $500, expressing optimism about the recent launch of the Axon Ads Manager. Similarly, Benchmark has adjusted its price target to $640 from $525, emphasizing the company’s next growth phase, including self-serve capabilities and international expansion.
Phillip Securities initiated coverage on AppLovin with an Accumulate rating, setting a price target of $725, noting the company’s strong position in mobile games advertising. Jefferies reiterated its Buy rating with a $760 price target, pointing to significant advertiser adoption, as evidenced by insights from a call with Tierra Agency’s CEO. These developments reflect a positive sentiment from analysts regarding AppLovin’s growth prospects and strategic initiatives.
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