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Investing.com - Piper Sandler raised its price target on AppLovin Corp (NASDAQ:APP) to $740.00 from $500.00 on Friday, maintaining an Overweight rating ahead of the company’s Axon Ads Manager soft launch. The company has demonstrated remarkable performance, with a 399% return over the past year and maintains a "GREAT" financial health rating according to InvestingPro analysis.
The significant price target increase of 48% comes as the research firm expressed enthusiasm about the October 1st launch of Axon Ads Manager. Piper Sandler plans to track instances of the AppLovin Pixel through the product rollout. With impressive gross profit margins of 78.6% and a perfect Piotroski Score of 9, AppLovin’s financial fundamentals support this optimistic outlook.
The firm noted that AppLovin’s year-to-date product changes via partner newsletters are "impressive" and potentially superior to social media competitors except for Meta. Analysts have developed a new framework to monitor the performance of AppLovin’s advertising technology.
Piper Sandler raised its fiscal year 2026 revenue and EBITDA estimates by 11% after breaking out gaming and non-gaming revenue segments in its analysis. The firm believes AppLovin is expanding into a market approximately 20 times larger than its current one.
While acknowledging the rollout may be "challenging and non-linear," Piper Sandler remains bullish on AppLovin’s potential to become a top advertising player in the expanded market.
In other recent news, AppLovin Corp has seen a series of positive analyst actions, reflecting optimism around its growth prospects. UBS raised its price target for AppLovin to $810, maintaining a Buy rating, and highlighted the company as its top pick within its coverage universe. Jefferies also reiterated its Buy rating, setting a price target of $760, driven by insights into strong advertiser adoption. Benchmark increased its price target to $640, citing AppLovin’s next growth phase, which includes self-serve capabilities and international expansion. BTIG raised its target to $664, focusing on the company’s non-gaming revenue growth, with analyst Clark Lampen forecasting significant increases by the fourth quarter of 2025. Jefferies further adjusted its price target to $615, noting growth drivers such as e-commerce advertising and international audience expansion. These developments underscore a broad consensus among analysts regarding AppLovin’s potential for continued growth.
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