Jefferies maintains buy rating on AppLovin stock with $530 target

On Monday, Jefferies analysts reaffirmed their Buy rating for AppLovin Corp (NASDAQ: NASDAQ:APP), setting a price target of $530. Currently trading at $401.89, the company has demonstrated impressive performance with a 41.63% revenue growth and industry-leading gross margins of 77.72%. The analysts highlighted an upcoming expert call scheduled for Thursday, June 5, at 3 p.m. ET, featuring Dana Peters, Co-Founder of PROOF Wallets. The discussion will focus on AppLovin’s advertising performance compared to Meta (NASDAQ:META) and Google (NASDAQ:GOOGL).

The call aims to explore the return on ad spend (ROAS) and scalability of AppLovin’s e-commerce product. It will also address spending trends on the platform relative to other platforms and the incrementality of AppLovin’s e-commerce campaigns. According to InvestingPro, AppLovin’s strong financial health and market position are reflected in analyst targets ranging from $250 to $650.

Dana Peters, who will be speaking during the call, is the co-founder of PROOF Wallets, a direct-to-consumer e-commerce brand. His company is currently increasing its advertising expenditure on AppLovin, Meta, and Google. Peters also owns Braelin Consumer Solutions, a distributor of industrial goods.

The Jefferies team encourages interested parties to register for the webinar to gain insights into the performance of AppLovin’s platform and its customer service levels as it onboards new brands.

In other recent news, AppLovin Corp has announced several key developments that are capturing investor attention. The company recently reported robust first-quarter results, leading to various analysts adjusting their price targets and maintaining positive ratings. Cannonball Research has projected that AppLovin will generate $1,205 million in revenue for the second quarter of fiscal year 2025, with an Adjusted EBITDA of $976 million, and a GAAP EPS of $1.69. For the full fiscal year 2025, they expect revenue to reach $5,284 million and Adjusted EBITDA to be $4,057 million, reflecting confidence in the company’s financial trajectory.

Additionally, UBS raised its price target for AppLovin to $475, citing strong performance in gaming advertisement revenue and improved EBITDA margins. Benchmark analysts also reiterated a Buy rating with a $525 target, highlighting the company’s focus on scalable advertising solutions and innovations like self-service tools and automated advertisement generation. Piper Sandler increased their target to $455, emphasizing AppLovin’s sustained performance and upcoming catalysts, such as the testing of a self-serve platform and international expansion.

Furthermore, BTIG raised the price target to $480, maintaining a Buy rating following AppLovin’s strategic decision to divest its first-party mobile games business. The sale to Tripledot Studios is expected to streamline AppLovin’s operations and enhance its financial profile. These developments and strategic changes indicate a positive outlook from analysts, with continued confidence in AppLovin’s growth prospects and financial performance.

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