Raytheon awarded $71 million in Navy contracts for missile systems
On Tuesday, Piper Sandler expressed a continued positive outlook for AppLovin Corp (NASDAQ: NASDAQ:APP), maintaining an Overweight rating and a $400.00 price target on the stock.
The firm's analyst highlighted several strengths in AppLovin's approach to E-Commerce and advertising, noting competitive ad pricing, incremental spend, and the potential for expanding attribution windows.
The analysis of AppLovin's E-Commerce initiatives revealed a competitive edge in ad pricing compared to industry peers and an incremental spending pattern by consumers. However, it was noted that the new E-Commerce product discovery could be improved, the purchase consideration window was shorter than that of competitors, and the average purchaser age tended to be older.
Despite these mixed findings, Piper Sandler remains optimistic about the E-Commerce launch, foreseeing opportunities for AppLovin to enhance the initial version of its advertising product. The introduction of the Piper Sandler Conversion Model suggests that AppLovin has the potential to reach its growth targets of 20-30% by improving conversion rates to approximately 2% by the year 2030, up from the current rate of around 1%.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.