J.P. Morgan analyst Cory Carpenter initiates coverage on $Applovin (APP.US)$ with a hold rating, and sets the target price at $160.
According to TipRanks data, the analyst has a success rate of 32.6% and a total average return of -11.1% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Applovin (APP.US)$'s main analysts recently are as follows:
The firm updated its estimates across its video game coverage in anticipation of upcoming earnings. Although global video game industry growth appears to be lukewarm, stable mobile trends are seen as a positive sign and there is an expectation for console spending to pick up next year. This anticipated increase is thought to be driven by a robust lineup of games and the potential release of a new generation Switch.
The introduction of AppLovin's AI engine, Axon 2.0, in the second quarter of 2023 is seen as a significant factor in advancing the company's growth and profitability, a development that has yet to be fully appreciated by the market and industry observers. The view of the company as one with substantial growth potential has led to an increase in the growth estimates for the Software section for the years 2025 and 2026. This adjustment is grounded in a stronger conviction in the company's foundational business surrounding mobile game advertisements, which has also motivated a revision of the valuation multiple applied to the projected EBITDA for the year 2026.
AppLovin has established itself as essential infrastructure within the mobile gaming sector, demonstrating its significance as an investment opportunity in big data and artificial intelligence. Analysts note that while the company's stock price has experienced rapid appreciation, any potential pullback may present a buying opportunity. However, the belief is that this re-evaluation is justifiable and will persist, given the substantial prospects for growth anticipated in the company's primary area of operation.
Note:
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