The Best Is Yet to Come,' Says Jefferies About AppLovin Stock (APP), Lifts Price Target to Street-High $860

AppLovin (APP) stock received a new boost from Jefferies after top analyst James Heaney kept a Buy rating and raised his price target to a street-high $860 from $800, implying 93.5% upside potential. Heaney said AppLovin is quickly becoming a key player in mobile ads, and he thinks the market is still not giving the company enough credit for how much it can grow over the next two years.TipRanks Cyber Monday Sale Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence. Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off What's Driving Jefferies' Bullish View Heaney believes AppLovin's ad business has room to beat current revenue estimates. He pointed to the strength of the AXON ad engine and the steady rise in advertisers using the platform. With this momentum, he expects the company to keep growing revenue by 30% or more for the next few years. Margins are another reason for his upbeat view. Heaney thinks AppLovin can reach an adjusted EBITDA margin of above 80%, which he said is rare in the digital ad space. Strong margins, along with steady growth, give the company what he sees as a strong setup going into FY26 and beyond. The analyst also highlighted AppLovin's move beyond gaming. While the company built its base in mobile games, Heaney said its push into e-commerce and other new areas could fuel the next phase of growth. As more brands use AppLovin's tools, he expects the company to deliver solid ad results across a wider set of industries. Heaney called AppLovin an "emerging leader" with several growth drivers working in its favor. With rising demand, better margins, and new categories opening up, he sees more upside as the company continues to execute. Is APP a Good Stock to Buy? Overall, Wall Street has a Strong Buy consensus rating on AppLovin stock based on 17 Buys and three Hold recommendations. The average APP stock price target of $747.47 indicates about 6.28% upside potential.