UBS has revised its price target for AppLovin (APP, Financial), lowering it from $630 to $450 while maintaining a Buy rating on the stock. This adjustment comes amid observations that the mobile gaming user acquisition landscape remained steady throughout the first quarter, a trend expected to continue into the second quarter.
Despite some concerns triggered by previous short report allegations, apprehensions are gradually subsiding. However, investor confidence still appears shaky, with minimal inclination towards assigning a 40x or higher EBITDA multiple to the company. The feedback from channel checks remains positive, indicating a healthy status within the market. Nevertheless, UBS predicts that no substantial algorithm changes will be introduced in the first quarter.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for AppLovin Corp (APP, Financial) is $485.99 with a high estimate of $650.00 and a low estimate of $200.00. The average target implies an upside of 84.29% from the current price of $263.71. More detailed estimate data can be found on the AppLovin Corp (APP) Forecast page.
Based on the consensus recommendation from 27 brokerage firms, AppLovin Corp's (APP, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for AppLovin Corp (APP, Financial) in one year is $90.12, suggesting a downside of 65.83% from the current price of $263.71. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the AppLovin Corp (APP) Summary page.
