APPS Stock Soars 53%, On Track For Best Single-Day Gains In 11 Months — Why Did BofA Turn Bullish On Digital Turbine?

• BofA upgraded Digital Turbine to ‘Buy’ from ‘Neutral’ while maintaining its $7.50 price target, citing stronger execution and improving visibility into fiscal 2027.
• The firm pointed to a streak of quarterly beats and raised guidance over the past four quarters, which it said has increased confidence in management's ability to consistently deliver results.
• Digital Turbine has beaten revenue expectations in seven of the previous eight quarters.

Shares of Digital Turbine Inc. (APPS) soared over 53% in Wednesday’s opening trade following the company’s fourth-quarter (Q4) results that blew past Wall Street expectations.

Digital Turbine reported earnings per share (EPS) of $0.16 in Q4, compared to an EPS of $0.1 during the same period a year ago. The company’s revenue rose about 20% year-on-year to $143 million.

Wall Street analysts expected Digital Turbine to report an EPS of $0.09 on revenue of $133 million, according to Fiscal.ai data.

Digital Turbine shares were up more than 42% in Wednesday morning’s trade, after paring some of the early gains. APPS was among the top trending tickers on Stocktwits at the time of writing.

BofA Turns Bullish On APPS

According to TheFly, BofA upgraded Digital Turbine to ‘Buy’ from ‘Neutral’ while maintaining its $7.50 price target, citing stronger execution and improving visibility into fiscal 2027.

The firm pointed to a streak of quarterly beats and raised guidance over the past four quarters, which it said has increased confidence in management's ability to consistently deliver results. Digital Turbine has beaten revenue expectations in seven of the previous eight quarters.

BofA also noted that Digital Turbine's business has become more diversified across geographies and customer segments, reducing its exposure to macroeconomic headwinds and making demand trends more resilient during periods of economic uncertainty.

According to Koyfin data, the average 12-month price target for APPS is $8.75, implying an upside potential of 28% from current levels. Of the two analysts covering the stock, one has a ‘Buy’ rating, while another recommends ‘Hold’.

APPS CEO Credits Effective Data Utilization For Q4 Beat

Digital Turbine CEO Bill Stone credited the company’s effective utilization of its first-party data to drive better results for its customers, which include advertisers, publishers, carriers, and original equipment manufacturers (OEMs).

“Our ability to leverage valuable new AI tools and partnerships to maximize the value of our extensive data array has been, and will continue to be, a meaningful contributor to growth,” Stone said.

Digital Turbine’s fiscal year 2027 revenue guidance also surpassed Wall Street expectations. The company forecast FY27 revenue in the range of $630 million and $650 million, while the consensus estimate is for revenue of $619 million.

Digital Turbine partners with carriers and smartphone manufacturers to embed software directly into the firmware of the phones. This allows the carriers and phone makers to manage the delivery of apps to their users while enabling ad monetization for their clients.

How Did Retail Investors React To APPS Stock?

Retail sentiment on Stocktwits around Digital Turbine trended in the ‘extremely bullish’ territory with message volumes at ‘high’ levels.

APPS stock is up 38% year-to-date and 51% over the past 12 months. The iShares Russell 2000 Growth ETF (IWO) is up 39% over the past 12 months, while the iShares Micro-Cap ETF (IWC) is up 60%.

The Vanguard Information Technology Index Fund ETF (VGT) is up 54% during this period, while the Vanguard Russell 2000 Growth Index Fund ETF (VTWG) is up 39%.

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