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 Playtika Holding’s strong financial performance and strategic positioning. The company reported impressive third-quarter results with a significant increase in direct-to-consumer (DTC) revenue, which not only exceeded expectations but also positively impacted profit margins. This growth in DTC revenue was largely driven by favorable changes in Apple’s policies and strong performance in the U.S. iOS market.
Additionally, Playtika’s casual games segment showed remarkable year-over-year growth, particularly with titles like Bingo Blitz and Disney Solitaire, the latter achieving rapid scaling and substantial revenue milestones. Despite challenges in the social casino segment, the company’s overall gross margin reached a record high, and adjusted EBITDA surpassed both internal and consensus forecasts. These financial achievements, coupled with effective cost management, underpin Doug Creutz’s optimistic outlook on Playtika’s stock, warranting a Buy recommendation.