Shares of Digital Turbine (NASDAQ:APPS) popped by as much as 10% today following a bullish research note from Wall Street. Craig-Hallum reiterated a buy rating on the stock while increasing its price target from $44 to $60. As of 3:10 p.m. EST, shares were up 9%.
Analyst Anthony Stoss says that the company's partnership with Samsung is starting to pay off in Brazil. Digital Turbine, which operates an on-device media platform for wireless carriers, phone manufacturers, and advertisers, is also positioned to enjoy cross-selling opportunities while also benefiting from rising 5G adoption, 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 gain nearly 150% so far this year.
In a research note to investors, the analyst described the analogy:
[Digital Turbine] has established itself as the Switzerland of app platforms. App developers can pay [Digital Turbine] to include their app on a smartphone's initial setup for a new customer. [Digital Turbine] allows app developers to target specific customers across AT&T and Verizon.
Craig-Hallum is also encouraged that Digital Turbine was recently awarded a patent for its Single Tap technology, which streamlines app installation and removes friction for users. As mobile platform operators move toward limiting the amount of data that is available to advertisers, Single Tap could help provide advertisers with better access to that data, according to the analyst.