Bank of America Raises AppLovin Price Target to $210 After Axon 2.0 Launch, Stock Up 8.5%

Bank of America Securities has raised its price target for AppLovin (APP) to $210 from $120, citing the successful launch of Axon 2.0, the company's AI engine, in the second quarter of 2023. Analysts believe this innovation has driven a significant transformation in growth and profitability for AppLovin, which has not been fully recognized by the market. The company's core business is reportedly growing at a sustainable rate of 20%. Following the announcement, AppLovin's stock surged by 8.5%. Additionally, there has been notable activity in the options market, with buyers showing interest in November $200 calls at $2.50 and January $210 calls at $4.00. Analysts re-envision AppLovin as a growth stock, raising its valuation to 18x EV on CY26 EBITDA.