Digital Turbine (APPS) Investment in Aptoide a 'Bold But Risky Bet' - Oppenheimer

October 5, 2022 12:41 PM EDT
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Price: $18.78 +2.85%

Rating Summary:
    9 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 10 | Down: 28 | New: 30
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Oppenheimer analyst Timothy Horan weighed in on Digital Turbine (NASDAQ: APPS) made a strategic investment in Aptoide, a relatively obscure "independent Android app store" that competes with Google Play. The analyst calls the move a "Bold, Risky Bet."

"Google is DT's most important strategic relationship by far and drives its whole business model, and DT is increasingly competing with Google," Horan commented, "The only question that matters is, how will Google respond? The answer will take time to discern, but adds a risk premium to APPS in the interim, while any financial benefits from Aptoide will be de minimis in the near term. Long term, though, the monopolistic app stores/platform that Google controls are likely to be opened, and APPS should be a beneficiary."

The analyst reiterated an Outperform rating and $19.00 price target on APPS

For an analyst ratings summary and ratings history on Digital Turbine click here. For more ratings news on Digital Turbine click here.

Shares of Digital Turbine closed at $15.95 yesterday.

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