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On Thursday, the stock of AppLovin Corp (NASDAQ:APP), currently trading at $351.47, maintained its Buy rating with a steady price target of $620.00, as affirmed by Cannonball Research. The endorsement follows the company’s recent disclosure of first-quarter results and the divestiture of its Apps business. According to InvestingPro data, the company maintains a "GREAT" financial health score, having delivered an impressive 348% return over the past year.
Cannonball Research’s updated financial model anticipates that AppLovin will generate total revenue of $1,205 million in the second quarter of fiscal year 2025, alongside an Adjusted EBITDA of $976 million. The firm also projects a GAAP diluted earnings per share (EPS) of $1.69 for the same period. The company has demonstrated strong execution, maintaining robust gross profit margins of 77.7% and achieving revenue growth of 41.6% in the last twelve months.
Looking ahead to the full fiscal year 2025, Cannonball Research expects AppLovin to achieve total company revenue of $5,284 million. In terms of profitability, the Adjusted EBITDA is projected to reach $4,057 million, with a GAAP diluted EPS forecasted at $7.44.
The projections are based on the recent performance of AppLovin and take into account the strategic changes the company has made, particularly the sale of its Apps division. These estimates reflect the analyst’s confidence in the company’s financial trajectory following the adjustments made for the first quarter’s outcomes.
AppLovin’s stock performance will continue to be watched by investors as the company progresses through the fiscal year, with Cannonball Research’s analysis suggesting a positive outlook for the company’s revenue and earnings potential.
In other recent news, AppLovin Corp has reported strong first-quarter results, leading several analysts to adjust their price targets and ratings. UBS increased its price target for AppLovin to $475, maintaining a Buy rating, citing double-digit growth in gaming advertisement revenue and improved EBITDA margins. Benchmark also reiterated a Buy rating with a $525 target, highlighting the company’s strategic focus on scalable advertising solutions and its strong position in the e-commerce sector. Piper Sandler raised its target to $455, maintaining an Overweight rating, and noted the company’s sustained performance and upcoming catalysts, such as a self-serve platform and international expansion.
Oppenheimer adjusted its price target to $500 from $560, maintaining an Outperform rating, and emphasized the company’s resilience against macroeconomic challenges and its strategic focus on non-gaming advertising. BTIG raised its target to $471, keeping a Buy rating, and praised AppLovin’s first-quarter results, which exceeded expectations and highlighted growth in both gaming and non-gaming sectors. The company is expected to benefit from the rollout of its self-service platform and other strategic initiatives. These developments reflect a positive outlook from analysts, with confidence in AppLovin’s growth trajectory and financial performance.
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