AppLovin Corp (APP) PT Lowered to $100 at Oppenheimer

Oppenheimer analyst Martin Yang lowered the price target on AppLovin Corp (NASDAQ: APP) to $100.00 (from $120.00) while maintaining an Outperform rating.

The analyst commented, "APP's 2022 guidance reset expectations for its software business higher, and for its apps business (mobile games), lower. High-end of 2022 sales guidance $(3.85B) is barely outperforming consensus ($3.83B). Moreover, implied 2023 sales guidance is 6% below the Street, by our calculation. The "miss" is disappointing, but we view it as a key milestone to alter investors' perception of APP. Management has stated that it is really a high-margin enterprise software company with a mobile gaming business attached. By resetting the growth outlook for apps sales to the industry average (5%-10%), management may finally get investors to focus on its software business growing at over 70% ('21-'23E CAGR). We reiterate Outperform given robust fundamentals and lower PT to $100 based on lowered peer valuations."

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