TD Cowen analyst Doug Creutz reiterated a Buy rating on Playtika Holding today and set a price target of $14.00.
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Doug Creutz has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for Playtika Holding. Despite the recent underperformance in their social casino segment, which led to a slight miss in revenue and EBITDA expectations, the company has shown resilience with a notable increase in casual game revenue, particularly driven by the success of Disney Solitaire. This indicates a potential for growth in areas outside of their traditional social casino offerings.
Furthermore, management’s strategic initiatives, such as increasing their direct-to-consumer target and the upcoming launch of a new slot game, Jackpot Tour, are seen as positive steps toward stabilizing and potentially enhancing monetization. While the revenue guidance for FY25 has been slightly lowered, the maintained EBITDA guidance suggests a focus on cost management and operational efficiency. These factors combined with the company’s efforts to diversify its revenue streams and improve engagement metrics underpin the Buy rating, despite the challenges faced in certain segments.
According to TipRanks, Creutz is a 5-star analyst with an average return of 13.1% and a 65.33% success rate. Creutz covers the Communication Services sector, focusing on stocks such as Paramount Global, Roblox, and Playtika Holding.
In another report released today, Wedbush also maintained a Buy rating on the stock with a $11.50 price target.