Particle.news
Download on the App Store

Deutsche Bank Initiates AppLovin at Buy With $705 Target on AI Ad Strength

Management's Q3 outlook calls for $1.32–$1.34 billion in revenue with an 81% adjusted-EBITDA margin, supporting recent optimism.

Overview

  • Goldman Sachs lifted its price target to $630 from $445 on October 14 while keeping a Neutral rating.
  • Deutsche Bank cites dominant share in mobile games user-acquisition ads, estimating about 80% on the supply side and over 55% on the demand side.
  • Analysts highlight the Axon model's scale-driven flywheel and performance across the open web as key competitive advantages.
  • Deutsche Bank says AppLovin is moving into e-commerce advertising and could eventually address larger verticals such as financial services, media and entertainment, and healthcare.
  • S&P Global Ratings expects S&P-adjusted net leverage to remain under 1x over the next 24 months.