Benzinga | Jan 5, 2022 06:51AM EST

Morgan Stanley Considers AppLovin's MoPub Acquisition A "Game Changer" - Read Why

* Morgan Stanley analyst Matt Cost termed AppLovin Corp's (NASDAQ:APP) $1.05 billion acquisition of MoPub from Twitter Inc (NYSE:TWTR) a "game-changer."

* The deal brought AppLovin technological advances to solidify its leading supply-side solution, adding that he believes the company's SSP will be among the largest in the industry once this integration is complete, which the company expects to be by March 31.

* Cost believes that the acquisition of MoPub will drive increased visibility into crucial ad auction data and create an opportunity for AppLovin to monetize $15 billion - $20 billion of ad spend in 2023.

* Cost maintained an Overweight rating and $120 price target on AppLovin, implying a 27.1% upside.

* Price Action: APP shares closed lower by 6.11% at $88.61 on Tuesday.