Analyst Michael Pachter of Wedbush reiterated a Buy rating on Playtika Holding (PLTK – Research Report), retaining the price target of $11.50.
Michael Pachter has given his Buy rating due to a combination of factors that highlight Playtika’s potential for significant growth and profitability. The company is positioned on Wedbush’s Best Ideas List, with its core games and recent acquisitions expected to drive revenue and profit growth over the next several years. The stock is currently undervalued, as the market has not fully recognized its growth potential, which could lead to a doubling of its share price in the coming years.
Playtika’s acquisition of SuperPlay is anticipated to enhance profitability by increasing revenue while reducing user acquisition costs. Additionally, a recent court decision allowing competition from mobile web stores on iOS and Android platforms is likely to lower fees and improve margins, benefiting Playtika’s direct-to-consumer platform. The company’s strong portfolio of leading games, history of financial outperformance, and growth through mergers and acquisitions further support the Buy rating, with a maintained price target of $11.50 and an OUTPERFORM rating.
Pachter covers the Communication Services sector, focusing on stocks such as Roblox, Electronic Arts, and fuboTV. According to TipRanks, Pachter has an average return of -5.6% and a 42.68% success rate on recommended stocks.
In another report released on April 29, TD Cowen also reiterated a Buy rating on the stock with a $16.00 price target.