AppLovin (APP) Sees Substantial Target Hike as Scotiabank Reaffirms Outperform

AppLovin Corp. (NASDAQ:APP) is among the most fantastic stocks every investor should pay attention to. On November 6, Nat Schindler, an analyst at Scotiabank, raised the price target for the stock from $575 to $750, warranted by the strong Q3 results and upbeat management commentary. As a result, he reaffirmed his bullish stance with an Outperform rating, according to TheFly.

For context, in its Q3 results, the company reported a 68% surge in revenue to $1.41 billion, which came in 5% ahead of consensus. The management attributed the topline growth to model updates in the core gaming business. Its Axon Advertising platform performed strongly, witnessing a 75% increase in net revenue per installation, which was only modestly offset by a 1% decrease in installation volume.

The EBITDA margin also expanded by approximately 490 basis points year-over-year, resulting in an adjusted EPS of $2.45, 3% ahead of consensus.

Apart from the strong results, Nat Schindler was encouraged by the management’s commentary, which indicated broad-based momentum across various segments of the business. Schindler also highlighted that the management cited expanding ad supply, diversified content portfolio, and improved user retention as key drivers for future growth.

AppLovin Corp. (NASDAQ:APP) is a technology company that provides software and tools for mobile app developers and advertisers to acquire customers, as well as to grow and monetize their businesses.

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Disclosure: None. This article is originally published at Insider Monkey.