UBS Group AG and Piper Sandler significantly raise the target price of Applovin (APP.US) and see the promising future of the Axon 2.0 platform.

Investment banks UBS Group AG and Piper Sandler have raised their target stock prices for Applovin (APP.US) due to the continued strong business performance exhibited by the company. UBS Group AG analyst Chris Kuntarich stated in a client report, "Over the next 12 months, we expect AppLovin to increase the efficiency of its Axon 2.0 platform through expansion measures on both the demand and supply sides, thereby driving an upward adjustment in valuation multiples and profit forecasts. Market research following the second quarter earnings report showed that network advertising clients have stable demand for recommended projects, and there is an opportunity to increase awareness among Fortune 1000 brand service agents. In the mobile gaming sector, no factors were found that could shake AppLovin's industry-leading position." Kuntarich significantly raised AppLovin's target stock price from $540 to $810, maintaining a "buy" rating and listing it as the bank's top pick. Piper Sandler analyst James Callahan holds a similar view and is looking forward to the launch of the Axon advertising management platform on October 1. "We remain optimistic," Callahan wrote in the report. "Management has shown full confidence in this product, and we believe it has a solid foundation. AppLovin is entering a market that is about 20 times larger in scale, and early signs indicate that it has the potential to become a top advertising platform. While the promotion process will face challenges and volatility, the positive market feedback is justified." Callahan reiterated a "neutral" rating and raised the target stock price from $500 to $740.