Macquarie analyst Tim Nollen maintains $Applovin (APP.US)$ with a buy rating, and sets the target price at $450.
According to TipRanks data, the analyst has a success rate of 51.1% and a total average return of 19.2% 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 became increasingly positive on the company's potential for growth in mobile gaming and eCommerce sectors after discussions with company management. This optimism has led to an adjustment in their growth forecast and a reevaluation of the valuation multiple to better match that of the company's peers. Management highlighted ongoing improvements in their business model, initial successes in their venture into eCommerce, and opportunities for enhanced conversion rates.
AppLovin's entrance into e-commerce advertising is seen as a significant expansion beyond its effective mobile gaming sector, potentially accessing a market exceeding $120 billion. The company is believed to be well-positioned for success, benefiting from a robust financial architecture and a significant opportunity within the e-commerce segment.
AppLovin's Software Platform business is seeing benefits from AXON 2.0, which offers a competitive edge by effectively utilizing data from its leading mediation platform. This enhancement improves the precision of predictive algorithms used in AppDiscovery. Additionally, there's increased confidence in AppLovin's venture into the e-commerce advertising sector. Simultaneous maintenance of cost discipline is expected to broaden the company's adjusted EBITDA margin and bolster free cash flow generation.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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