Digital Turbine is a buy, this analyst says

Roth Capital Partners analyst Rohit Kulkarni says Digital Turbine (Digital Turbine Stock Quote, Chart, News, Analysts, Financials NASDAQ:APPS) has completed a durable turnaround after several years of integration challenges and weaker execution.

In a July 21 report, Kulkarni initiated coverage of Digital Turbine with a “Buy” rating and $11.50 target.

“After several years of post-pandemic issues with M&A integration and poor execution, we believe APPS has completed a durable, multi-driver turnaround rather than a one-quarter bounce,” Kulkarni said.

Digital Turbine is a mobile advertising technology company with demand-side, supply-side and mediation platforms. Kulkarni said the company has a differentiated position in on-device mobile app distribution, supported by proprietary data and sticky firmware relationships.

Digital Turbine has access to more than one billion devices and is embedded in more than 80,000 apps reaching more than one billion monthly users.

Kulkarni said diligence with customers, partners and management increased his confidence in three parts of the story: the turnaround, the company’s on-device data and distribution moat, and upside to fiscal 2027 guidance.

“Mgmt. views AI as a net tailwind rather than a threat,” Kulkarni said, as media dollars follow users into apps, He said AI coding could increase the number of apps, while AI chatbots may accelerate the shift from the open web to apps.

He also highlighted Digital Turbine’s contract with European telecom operator Orange as an important milestone. The rollout is expected in the second half of calendar 2026, with full scale reached over about 24 months and potential to add 10% to long-term revenue.

Other catalysts include new OEM and telecom deals and debt refinancing.

Kulkarni expects Digital Turbine to generate Adjusted EBITDA of $143.7-million on revenue of $637.6-million in fiscal 2027, improving to Adjusted EBITDA of $174.9-million on revenue of $698.2-million in fiscal 2028.

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