On Monday, Oppenheimer has raised its price target on shares of AppLovin Corp (NASDAQ: NASDAQ:APP) to $85 from the previous $70 while maintaining an Outperform rating. This adjustment comes after positive industry checks at MAU Vegas, a conference for mobile growth professionals that took place last week.
The firm's analyst observed a significant increase in the company's presence among mobile advertisers and publishers. AppLovin was frequently mentioned in the same context as leading self-reporting networks like Google (NASDAQ:GOOGL) and Meta (NASDAQ:META), indicating a growth in mind share compared to two years prior.
The analyst also noted that current platform-related issues, such as Apple (NASDAQ:AAPL)'s Privacy Manifest and Google's Privacy Sandbox, are not expected to create additional challenges for the mobile user acquisition landscape in 2024. These developments suggest a stable environment for AppLovin to continue its operations.
The endorsement of AppLovin as a top pick within the firm's coverage is based on its superior execution, financial profile, and growth momentum. The raised price target reflects the analyst's confidence in AppLovin's continued success and potential for growth in the mobile advertising sector.
AppLovin's performance and strategic position in the industry have been recognized as strong, with the company being seen as well-equipped to navigate the evolving digital advertising space. The new price target of $85 represents a positive outlook for the company's stock and its future in the market.
InvestingPro Insights
Following Oppenheimer's optimistic outlook on AppLovin Corp (NASDAQ: APP), InvestingPro data further substantiates the company's robust position in the market. With a market capitalization of $24.64 billion and a notable revenue growth of 16.54% over the last twelve months as of Q4 2023, AppLovin's financial health appears strong. Moreover, the company's gross profit margin stands at an impressive 67.74%, highlighting its ability to maintain profitability amidst competitive market conditions.
InvestingPro Tips suggest that AppLovin's aggressive share buyback strategy and the expectation of net income growth this year could be key drivers for the stock's future performance. Additionally, the stock's significant return of 375.8% over the last year and its current price hovering near the 52-week high indicate a strong market sentiment. However, the company's high P/E ratio of 75.03, despite being lower than the adjusted P/E ratio for the last twelve months, suggests a premium valuation that investors are willing to pay for its growth prospects.
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