Caesars Entertainment misses Q2 earnings expectations, shares edge lower
Investing.com -- Digital Turbine Inc. (NASDAQ:APPS) stock closed 56.6% higher after Craig-Hallum analyst Anthony J. Stoss raised the price target on the company to $7.00 from $4.00 while maintaining a Buy rating.
The significant price movement follows the analyst’s bullish outlook on Digital Turbine’s SingleTap software and its positioning for alternative app store launches. According to Stoss, the company is already live with Telefonica (NYSE:TEF) in the UK, Germany, and Brazil with Epic Games, providing Digital Turbine with both a fee and royalty structure.
The analyst highlighted several positive developments for the company, including a potential new SingleTap customer in AppLovin (NASDAQ:APP) preparing for launch, and management’s announcement that they are working with "a major AI player for distribution on Android phones." Additionally, T-Mobile is now live on DT Ignite.
Digital Turbine secured a four-month extension on its approximately $409 million debt, which isn’t due until April 2026. This extension prevents the debt from becoming current and triggering a going concern assumption.
The company reported better-than-expected results for the March quarter, particularly in EBITDA, and provided guidance in line with Street expectations for fiscal year 2026 revenue and better-than-expected EBITDA guidance.
Stoss suggested that management may be conservative in their guidance, noting this was the new CFO Stephen Lasher’s first earnings call. The analyst also mentioned that Digital Turbine’s advertising business remains strong as brand advertisers shift spending toward the company.
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