Applovin: Scotiabank maintains Outperform rating, raises PT to $450 from $430.

Applovin: Scotiabank maintains Outperform rating, raises PT to $450 from $430.

Scotiabank has maintained its Outperform rating on Applovin (NASDAQ: APP) while raising its price target to $450 from $430. The update comes following the company's strong second-quarter earnings report, which saw earnings per share (EPS) of $2.28, beating expectations by 30 cents. Revenue of $1.26 billion, up 77.2% year over year, also exceeded estimates by $40 million [1].

The company's continued strength in gaming advertising, driven by improved technology, increased demand, and supply-side expansion, was highlighted by CEO Adam Arash Foroughi. Foroughi expressed confidence in the company's ability to sustain 20% to 30% year-over-year growth, driven by gaming alone [1].

CFO Matthew Stumpf noted that revenue increased by 77% from last year to approximately $1.260 billion, while adjusted EBITDA nearly doubled to an impressive $1.020 billion, achieving an 81% adjusted EBITDA margin [1].

Scotiabank's price target increase reflects the company's impressive performance and growth prospects. The analyst firm cited the company's strong earnings beat, continued gaming sector strength, and the upcoming launch of the AXON ads manager self-service portal in early October 2025 as key drivers for the upward revision [1].

Analysts from various firms have expressed optimism about Applovin's future. Piper Sandler raised its price target to $500, while JPMorgan increased its target to $425. Benchmark, Morgan Stanley, and Loop Capital also reiterated their positive outlook on the stock [1][2][3].

Applovin's strong financial performance and strategic advancements, including the divestment of its Apps business and the launch of new self-serve ad products, have attracted significant analyst attention. The company's impressive gross profit margins of 78.6% and a perfect Piotroski Score of 9 indicate exceptional financial strength [3].

In conclusion, Scotiabank's updated rating and price target for Applovin reflect the company's robust financial performance and promising growth prospects. Investors should continue to monitor the company's progress and upcoming product launches for further insights.

References:

[1] https://247wallst.com/investing/2025/08/07/can-applovin-stock-test-460/
[2] https://www.benzinga.com/analyst-stock-ratings/price-target/25/08/46973600/doordash-to-rally-around-30-here-are-10-top-analyst-forecasts-for-thursday
[3] https://ca.investing.com/news/analyst-ratings/applovin-stock-price-target-raised-to-500-from-470-at-piper-sandler-93CH-4144032