HSBC analyst Mohammed Khallouf has revised the price target for AppLovin (APP, Financial), trimming it from $547 to $436 while maintaining a Buy rating. This adjustment comes as the firm reassesses the prospects of social media and advertising technology companies in light of challenging macroeconomic conditions.
HSBC has also adjusted its revenue growth forecasts for companies in the sector. Specifically, revenue projections for fiscal year 2025 have been scaled down by 300 to 500 basis points, while forecasts for fiscal year 2026 are reduced by 200 to 300 basis points. These changes aim to align more closely with the anticipated slowdown in global advertising demand over the near to medium term.
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 $472.85 with a high estimate of $650.00 and a low estimate of $200.00. The average target implies an upside of 98.92% from the current price of $237.71. 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 $89.39, suggesting a downside of 62.4% from the current price of $237.71. 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.
