Jefferies upgrades this marketing stock with nearly 30% upside

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Jefferies upgrades this marketing stock with nearly 30% upside
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The firm upgraded AppLovin to buy from hold and hiked its price target to $50 per share from $20.

Jefferies' price target implies roughly 28% upside from Monday's $39.01 close. The company helps developers market their applications and provides analytic software. Analyst Andrew Uerkwitz said he's growing confident that AppLovin can continue gaining market share from competitors and thinks the company's software segment will continue to grow.

's +27%," Uerkwitz said. The analyst added that some headwinds in the broader mobile gaming sector remain worrisome, but AppLovin should be able to navigate a tougher environment successfully. "The key question facing AppLovin and the entire mobile games market is: have Apple and macro fundamentally broken mobile gaming?" Uerkwitz said. "We don't believe so, but do anticipate a tough 2023 as the industry reorients itself for long-term growth.

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