Piper Sandler analyst James Callahan raised the price target on AppLovin Corp (NASDAQ: APP) to $575.00 (from $400.00) while maintaining an Overweight rating.

The analyst commented: "Shares are +29% AH following a very strong 4Q print & guide as execution continues across gaming and non-gaming verticals, which is no longer limited to just E-Com. APP also announced they are selling the lower-margin Apps segment which should simplify the story. Execution continues & we see a path to multiple years of revenue tailwinds from new verticals. We've written about our bullish view on E-Com and supply-side share. On higher estimates & multiple, we raise our PT to $575. Reit OW.

We remain buyers. APP is expanding into more than just ECommerce, which means the TAM expansion is likely well over ~10x. Assuming ~9% gaming Software q/q growth in 4Q24 would peg E-Commerce at ~$89MM, well above our sense on the bogey of ~$50M. Valuation is now less compelling with our PT at ~40x '26E EBITDA, but (1) APP is still trading below the “premium internet” group at ~40x avg and (2) we still see plenty of room for estimate revisions. Following the print, we raise our '26E EBITDA by ~17% to $5BN."