Loop Capital analyst Rob Sanderson initiates coverage on $Applovin (APP.US)$ with a buy rating, and sets the target price at $181.
According to TipRanks data, the analyst has a success rate of 60.2% and a total average return of 13.9% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Applovin (APP.US)$'s main analysts recently are as follows:
Updates to estimates across the video game sector have been made in anticipation of upcoming earnings. The growth of the global video game industry appears stable, albeit moderate, with mobile trends maintaining stability. There is an expectation for console expenditure to rise in the following year, bolstered by an impressive lineup of games and the prospect of a new generation release for the Switch console.
The introduction of AppLovin's AI engine, Axon 2.0, in the second quarter of 2023, is expected to mark a significant shift in the company's growth and profitability trajectory, a development that analysts believe has not been fully appreciated by the market or their peers. With a reimagined perspective of AppLovin as a growth entity, estimates for Software topline growth in 2025 and 2026 have been increased, reflecting greater confidence in the company's primary business of mobile game advertising. Consequently, the valuation approach has been adjusted, applying a revised multiple to the projected EBITDA for the year 2026.
AppLovin has transformed into a vital component of the mobile gaming sector and is establishing its presence in the big data and AI market, as noted by an analyst. The company's stock has experienced significant appreciation, and while analysts would embrace the chance to invest during a market dip, they also contend that the new valuation is justified and likely to persist, with expectations of substantial growth in the company's primary business area.
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