Analysts from Benchmark and BTIG have increased their price targets for Applovin (APP) stock, confirming their buy ratings and boosting confidence in the company’s mobile advertising technology, particularly in the AI space. Benchmark’s Mike Hickey raised his target from $525 to $640, calling it a top investment choice. Likewise, BTIG’s Clark Lampen adjusted his target from $547 to $664, stating that app stocks remain among the best selections. Let’s delve into their optimistic outlook.
Benchmarks elevate app stock targets with solid momentum
Hickey noted that Applovin is gearing up for its next growth phase, leveraging its innovative advertising model alongside e-commerce and global expansion. The company is set to introduce a self-service ad model on October 1st, starting with a referral system. Hickey identifies this move as a crucial short-term catalyst for attracting more advertisers. He anticipates that both the deployment of ADS Managers and international advertisers participating in this self-serve model will benefit Applovin significantly.
He also predicts that Applovin’s shift from gaming towards e-commerce advertisements will serve as a transformative growth driver. Currently, Applovin ranks as the third-largest e-commerce advertising platform in the U.S., capturing nearly 70% of the market alongside major players like Meta Platforms and Alphabet (Google). With only about 5% to 10% of potential advertisers currently onboarded, Hickey sees ample opportunity for growth. Moreover, he points out that the $100 billion mobile purchase market represents a significant new revenue stream as publishers combine advertising with shopping.
Hickey emphasizes that Applovin’s inclusion in the S&P 500 could heighten visibility and institutional ownership. He further believes that the stock is positioned for multi-year compound growth, given Marjon’s sustained performance—adjusted EBITDA margins between 80% to 85%—alongside disciplined capital management, including a prior $5.5 billion share repurchase, and an increasingly varied demand base.
BTIG shows optimism for app stock
Lampen has also adjusted his price targets to underline Applovin’s emerging revenue streams outside of gaming for the fourth quarter of 2025 and into 2026, highlighting the long-term market potential associated with broader audience engagement expected in the coming months.
The five-star analyst is optimistic that supply expansion and upgrades to the current model can enhance revenue projections for 2026.
Is App Stock a solid investment?
With 15 buy ratings and three holds, Wall Street presents a strong consensus favoring Applovin stock. The average price target for the stock stands at $538.94, indicating a potential downside risk of about 9.1%. Notably, the stock has appreciated by 83% since the beginning of the year.
