Jefferies thinks investors should buy into AppLovin . The firm upgraded AppLovin to buy from hold and hiked its price target to $50 per share from $20. Jefferies’ price target implies roughly 28% upside from Monday’s $39.01 close. The company helps developers market their applications and provides analytic software. Analyst Andrew Uerkwitz said he’s growing confident that AppLovin can continue gaining market share from competitors and thinks the company’s software segment will continue to grow. “Investors should have more confidence in sustainable growth (despite a weak mobile market), continued share shift, optionality on adjacent markets, and reasonable valuation. It’s better late than never, in our view, despite the extreme positive performance for AppLovin, +263% vs. NASDAQ’s +27%,” Uerkwitz said. The analyst added that some headwinds in the broader mobile gaming sector remain worrisome, but AppLovin should be able to navigate a tougher environment successfully. “The key question facing AppLovin and the entire mobile games market is: have Apple and macro fundamentally broken mobile gaming?” Uerkwitz said. “We don’t believe so, but do anticipate a tough 2023 as the industry reorients itself for long-term growth.” AppLovin has soared more than 270% this year. — CNBC’s Michael Bloom contributed to this report.