What happened
Sections of Digital turbine (NASDAQ: APPS) popped as much as 10% today after a bullish search note from Wall Street. Craig-Hallum confirmed a buy rating on the stock while raising its price target from $ 44 to $ 60. From 3:10 pm EST, shares went up 9%.
so what
Analyst Anthony Stoss says the company’s partnership with Samsung is starting to pay off in Brazil. Digital Turbine, which operates on an on-device media platform for wireless carriers, phone manufacturers, and advertisers, is also in a position to enjoy after-sales opportunities while also benefiting from a 5G upgrade, according to Stoss. Craig-Hallum called Digital Turbine the “Roku of smartphones, “which is a favorable comparison since the streaming TV platform has seen its stock nearly 150% so far this year.
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In a research note for investors, the analyst described the symbolism:
[Digital Turbine] has established itself as the Swiss of app platforms. App developers can pay [Digital Turbine] to introduce their app on smartphone startup setting for new customer. [Digital Turbine] allowing app developers to target specific customers across AT&T and Verizon.
Now what
Craig-Hallum is also encouraged that Digital Turbine has been granted a patent for their Single Tap technology, which speeds up app installation and removes clutter for users. As mobile platform operators move toward limiting the amount of data available to advertisers, Single Tap could help give advertisers better access to that data, according to the analyst.