It’s usually a sign a company must be doing something right when it receives an endorsement from one of the world’s tech giants.
As such, Digital Turbine’s (APPS) Tuesday disclosure of a strategic partnership with Google has received the thumbs up from Roth Capital’s Darren Aftahi.
It’s a collaboration which expands on the current ten-year relationship and “furthers APPS’ Android app discovery footprint.” APPS will join forces with Google cloud partner SADA, making use of Google’s cloud infrastructure to build products for the Android ecosystem.
“In short,” the 5-star analyst explained, “APPS will act as one of the lead app discovery platforms for the roughly one billion Android devices across the globe Ignite – AAPS’ app delivery and discovery platform – supports, streamlining APPS’ ability to achieve greater scale and install footprint in which it can begin to introduce more products and services (many of which carry higher revenue per device rates).”
Furthermore, the partnership is not just for mobile, but will stretch to other services such as TV and a range of connected devices.
However, the biggest takeaway, according to Aftahi, is that the nod of approval from Google confirms APPS’ “value proposition.” Following three other collaborations with Samsung, TikTok, Telefonica, with a fourth one in tow, APPS has now “further embedded itself with key strategic growth partners for greater global scale.”
It also confirms what Aftahi’s checks with the search giant have suggested; that the two companies have a solid working relationship, an issue investors have often sought to get more clarity on. “We believe the release and quote (by the President of Google Cloud) is further evidence of the strong partnership between the two companies,” the analyst summed up.
Accordingly, Aftahi reiterated a Buy rating for the shares, backed by a $90 price target, suggesting upside of 47% from current levels. (To watch Aftahi’s track record, click here)
The Street is in full agreement on this one. Based on Buys only – 5, in total – the stock has a Strong Buy consensus rating. Aftahi’s forecast appears on the conservative side; going by the $103.8 average target, the shares will be changing hands for ~70% premium a year from now. (See APPS stock analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.