AppLovin's (APP) 30% long-term annual revenue growth target lacks sufficient evidence, with uncertainty rising around the sustainability of its self-learning growth, BofA Securities said Tuesday in a report.

Engineer-led enhancements to AppLovin's gaming models drove sequential growth after Q2, while the company offered limited clarity into the durability of its projected 3% to 5% quarterly self-learning growth, the report said.

AppLovin's efforts to train larger, more complex recommendation models could drive further gains, though their scale and long-term stability remain uncertain, the report said. BofA lowered its 2027 revenue growth forecast to 23% from 31% and cut its estimate on the consumer segment to $2 billion from $2.3 billion.

BofA downgraded its rating on AppLovin stock to neutral from buy and lowered its price target to $400 from $430.

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