Morgan Stanley sees a bright future ahead for AppLovin . Analyst Matthew Cost upgraded the mobile ad company to overweight from equal weight. He did cut his price target to $350 from $470, but that still implies shares cam rise 27%. AppLovin has tumbled 16% this year after a whopping 712% surge in 2024. The stock has been pressured by broader market declines as well as short sellers targeting it . APP 1Y mountain APP 1Y chart But Cost is optimistic going forward, citing the company’s history of outperformance in the in-app advertising market. He now sees an attractive entry point for investors to “buy ad tech’s best executor.” “We believe APP is among the most resilient names in our ad coverage, given its high exposure to direct response budgets and innovation-driven outperformance vs. its end market,” Cost wrote. The company’s gaming ad expectations have also started to look achievable. The analyst added that AppLovin is on a good path to continue gaining market share in that space. “We now see APP shares as priced for a more achievable path forward in gaming, leaving room for more modest non-gaming estimates to nonetheless become APP’s main growth engine,” he wrote. “We see a path forward where APP continues gaining share in gaming ads while layering in contribution from nongaming to drive ad revenue growth at a 30% ’24-’27 CAGR [compound annual growth rate].” Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
