"Black put a $705 price target on AppLovin's shares, which represents a significant upside of about 17% compared to the stock's current price. The analyst says AppLovin dominates in mobile game user acquisition -- with more than 1 billion daily active users -- and that the company has "best-in-class" advertising technology. Black also estimates AppLovin will have revenue growth between 20% to 30% year over year in the coming years."
"Investors will get more insight into how the company is doing when AppLovin reports its third-quarter results on Nov. 5. The company's management has issued revenue guidance of $1.33 billion and adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA) of $1.08 billion, both at the midpoint of guidance. AppLovin's share price has already soared about 292% over the past year and, if Black's estimates prove correct, shareholders could have more to look forward to."
Deutsche Bank analyst Benjamin Black initiated coverage of AppLovin with a buy rating and a $705 price target, representing about 17% upside versus the current price. Black says AppLovin dominates mobile game user acquisition with more than 1 billion daily active users and has "best-in-class" advertising technology. Black projects 20% to 30% year-over-year revenue growth in the coming years and anticipates increased e-commerce ad share to diversify revenue. Management issued Q3 guidance of $1.33 billion in revenue and $1.08 billion in adjusted EBITDA at the midpoint. Shares have risen about 6% intraday and roughly 292% over the past year.
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