Citi raises AppLovin stock price target to $600 from $460

On Wednesday, Citi analysts demonstrated confidence in AppLovin Corp (NASDAQ:APP) by increasing the price target for the company’s shares to $600.00, up from the previous target of $460.00. The firm continues to endorse the stock with a Buy rating, reflecting optimism about the company’s future performance. The company’s stock has already delivered impressive returns, surging over 700% in the past year and 30% in the last week alone. According to InvestingPro data, AppLovin is currently trading near its 52-week high of $525.15.

In a recent statement, Citi analysts acknowledged AppLovin’s strong performance in 2024 and addressed investor concerns regarding the sustainability of this growth. After a thorough examination of the company’s prospects in the short term (1Q25), medium term (2025), and long term (beyond 2025), Citi found minimal risks, specifically in the second half of 2025, while identifying numerous opportunities for the company in the years following. The company’s fundamentals support this optimistic outlook, with InvestingPro analysis revealing a perfect Piotroski Score of 9 and robust revenue growth of 43.44% in the last twelve months. Subscribers to InvestingPro can access 20+ additional insights about AppLovin’s financial health and growth prospects.

The analysts’ decision to maintain the Buy rating is underpinned by their analysis, which suggests that the potential for growth and expansion outweighs the slight risks on the horizon. This positive outlook is a key factor in the decision to raise the price target from $460 to $600.

Citi’s revised price target of $600 represents a significant vote of confidence in AppLovin’s capacity to thrive and expand. The analysts at Citi have taken a comprehensive look at the company’s trajectory, considering multiple timeframes to ensure a well-rounded perspective on the potential risks and rewards.

AppLovin, with its robust performance in the previous year and the strong backing from Citi analysts, seems well-positioned to navigate the future landscape of its industry. The new price target is a reflection of the company’s potential to continue its growth trend and capitalize on the opportunities that lie ahead. With a market capitalization of $168 billion and analyst targets ranging from $105 to $630, investors seeking deeper insights can access AppLovin’s comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, AppLovin Corp has seen a series of price target upgrades from various analyst firms. UBS analyst Chris Kuntarich raised the price target to $630, citing strong performance in the gaming sector and impressive Q4 e-commerce adoption. Benchmark analyst Miike Hickey also increased the price target to $525, following AppLovin’s Q4 2024 performance where it surpassed revenue and AEBITDA expectations. Goldman Sachs analyst Eric Sheridan updated the financial outlook, raising the price target to $500, while maintaining a neutral stance. Piper Sandler analyst James Callahan increased the price target to $575, highlighting the potential for sustained revenue growth driven by expansion into new verticals. Lastly, BofA Securities analyst Omar Dessouky raised the price target to $580, following the company’s Q4 performance, particularly in its Advertising segment.

AppLovin has also announced plans to sell its apps business, a move seen as a strategic effort to streamline the company’s focus. The transaction is expected to close in the second quarter of 2025, pending regulatory approvals. The divestiture comes amidst recent developments in the company’s financial performance, including a robust uptake in Q4 e-commerce revenue, a significant 73% year-over-year growth in advertising revenue, and a 105% year-over-year increase in free cash flow for the fourth quarter, marking strong capital efficiency.

These recent developments reflect a positive outlook for AppLovin, with analysts citing the company’s potential to generate above-average growth and maintain a strong margin profile in the mobile advertising and gaming industry. However, it is important to note that the potential for forward estimate revisions may already be reflected in the stock’s price, as suggested by Goldman Sachs’ Eric Sheridan.

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