AppLovin's (APP) strong growth momentum is likely to continue, supported by gains in mobile advertising and sustained demand for its Max platform, Wedbush Securities said in a Monday note.

The brokerage expects the company to benefit from rising "user acquisition" spending, partly aided by the Apple (AAPL) vs. Epic Games case. It sees Max maintaining a dominant position while AppLovin's Axon platform is projected to achieve at least 20% annual growth, with newer offerings like Vector showing signs of accelerating momentum.

Wedbush forecasts Q2 revenue of about $1.23 billion and a 5.7% sequential growth rate for the software platform, above the company's guidance range and slightly ahead of consensus. It expects a 5% sequential increase for Q3.

Analysts noted that AppLovin is unlikely to disclose revenue from its ecommerce business until it broadens its reach to smaller firms.

Wedbush reiterated its outperform rating and $620 price target

Price: 364.80, Change: +0.66, Percent Change: +0.18