Playtika Holding (PLTK – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Michael Pachter from Wedbush maintained a Buy rating on the stock and has a $11.50 price target.
Michael Pachter has given his Buy rating due to a combination of factors, including Playtika’s recent acquisition of SuperPlay, which is expected to significantly enhance the company’s growth prospects. The acquisition, valued at approximately 2.5 times SuperPlay’s revenue, is anticipated to be highly accretive, contributing to Playtika’s pro forma growth. Both of SuperPlay’s key titles, Dice Dreams and Domino Dreams, are showing promising growth, reinforcing the potential for increased revenues.
Additionally, Playtika’s strong portfolio of leading games and its history of successful mergers and acquisitions position it well for future growth. Despite some investor concerns about the ownership structure in China and challenges in the mobile gaming sector, Pachter remains optimistic about Playtika’s ability to return to growth in the upcoming quarters. The company’s strategic pullback in marketing spending could also lead to improved profitability, further supporting the Buy rating.
Pachter covers the Communication Services sector, focusing on stocks such as Electronic Arts, Take-Two, and Doubledown Interactive Co. According to TipRanks, Pachter has an average return of -2.8% and a 45.23% success rate on recommended stocks.