Deutsche Bank Initiates Coverage on AppLovin with Buy Rating Ahead of Q3 Earnings
AppLovin (APP) shares gained attention as Deutsche Bank analyst Benjamin Black initiated coverage with a Buy rating and a $705 price target, suggesting 28% upside potential. The mobile game advertising leader is poised to report Q3 results on November 5.
Black, ranked among TipRanks' top 5% of analysts, highlighted AppLovin's dominant position in mobile ad tech and its AI-powered Axon model's expansion into e-commerce advertising. "Even modest market share gains in e-commerce could drive revenue above 2027 estimates," the note stated, emphasizing the sector's larger addressable market compared to gaming.
The analyst cited improving conversion rates and advertiser diversification as key growth drivers. AppLovin's technology stack reportedly demonstrates scaling advantages that create competitive moats, with Black calling it "best-in-class" for mobile performance advertising.
