Jefferies reiterated a Buy rating on AppLovin Corp (NASDAQ:APP) and kept its price target at $860.00 in a research note published Monday. The firm emphasized that the stock, then trading at $406.72, remains far below its target and that analyst consensus continues to strongly favor a Buy recommendation at 1.57.
In its note, Jefferies characterized the roughly 39% year-to-date decline in AppLovin’s shares as "a great buying opportunity." The firm quantified the company’s upside potential by pointing to more than 50% top-line growth potential by fiscal year 2026 and noted that the stock is trading at 15 times Jefferies’ fiscal year 2027 EBITDA estimate.
Data from InvestingPro cited within the research referenced a 39.64% year-to-date drop for the name and included a ProTip noting that the relative strength index (RSI) signals the shares are in oversold territory. Jefferies argued that a number of recent market worries - specifically concerns tied to CloudX, Meta Audience Network, and Google Genie - amount to "overblown risks" that have produced a valuation "dislocation" prior to AppLovin’s fourth-quarter results.
The firm signaled confidence that AppLovin’s forthcoming results will provide clarity quickly, pointing out that the company is scheduled to report earnings in two days on February 11th. Jefferies added that it expects the fourth-quarter top line to materially exceed consensus revenue forecasts.
Supporting its constructive stance, Jefferies referenced ongoing surveys and expert checks across both AppLovin’s gaming and e-commerce operations, describing those checks as having "continued to be positive." The note framed AppLovin as a provider of marketing software and tools used by mobile app developers to expand businesses through user acquisition and monetization solutions.
Other recent analyst activity underscores a broader positive view among research desks. Needham upgraded AppLovin to a Buy rating and set a $700 price target, citing increased conviction in the company’s ecommerce revenue growth path for 2026. Piper Sandler reiterated an Overweight rating with an $800 target, highlighting steady year-over-year increases in AppLovin’s sellers.json total supply and favorable trends in app-ads.txt data.
Evercore ISI started coverage with an Outperform rating and a $835 price objective, describing AppLovin’s ad tech platform as dominant in mobile gaming and identifying the emerging ecommerce channel as a significant market-expanding factor. Benchmark maintained a Buy rating and a $775 price target, addressing concerns around AI-driven game creation and suggesting the consequences for AppLovin are frequently overstated relative to peers.
Piper Sandler also reiterated its positive outlook separately, pointing to encouraging ecommerce metrics and constructive commentary on the company’s prospective business trajectory. Taken together, these actions illustrate a strong cluster of analyst endorsements that emphasize AppLovin’s position in ad tech and its growth prospects across gaming and ecommerce.
With earnings imminent, the market will soon get a fresh data point to test the various analyst views. Jefferies’ case rests on expected robust revenue delivery in the fourth quarter and the belief that recent concerns around CloudX, Meta Audience Network, and Google Genie have been overstated. Multiple research houses have reiterated or initiated coverage with Buy, Overweight, or Outperform ratings and price targets ranging from $700 to $860, reflecting confidence in the company’s growth trajectory.
Investors watching AppLovin should weigh the divergent inputs: a sizable recent share price decline and signals of oversold technical conditions versus a broad set of analysts forecasting strong top-line expansion and a potentially material earnings beat in the quarter ahead.