12:46 PM EDT, 09/11/2024 (MT Newswires) -- AppLovin's ( APP ) eCommerce segment is expected to contribute 10% to revenue by 2025 and 16% by 2026, reflecting a material boost from this sector, BofA said in a note Wednesday.

AppLovin's ( APP ) software segment is projected to achieve over 20% year-over-year growth through 2026, driven by better install rates and higher efficiency from its AI engine, the investment firm said.

BofA said it forecasts revenue of $5.33 billion for CY25, up from $5.12 billion, driven by increased contributions from eCommerce and other digital advertising.

AppLovin's ( APP ) gaming segment is also expected to contribute to growth, but at a more modest rate, with a valuation of $5 per share included in the overall price target, BofA said.

BofA maintained its buy rating on AppLovin ( APP ) while raising the price target to $120 from $100.

The company's shares were up nearly 9% in recent trading.

Price: 93.60, Change: +7.37, Percent Change: +8.55