Robert W. Baird analyst Colin Sebastian downgraded the rating on Playtika Holding (PLTK – Research Report) to a Hold yesterday, setting a price target of $6.00.
Colin Sebastian has given his Hold rating due to a combination of factors impacting Playtika Holding’s current and future performance. The company is facing headwinds in the mobile gaming sector, with concerning trends in its core franchises, prompting a more cautious outlook. Despite the potential for organic growth and the value of its platform, the lack of visibility into the performance of new titles and recovery in usage and monetization among top titles necessitates a neutral stance.
Additionally, structural challenges such as lower margins, intense competition in the social casino space, and reliance on marketing and acquisitions contribute to the Hold rating. While management is actively seeking growth opportunities outside of aging franchises, the transition year ahead, with expected revenues and adjusted EBITDA below consensus, underscores the need for caution. The company’s guidance for 2025 reflects these challenges, with a focus on supporting newer studios and diversifying away from legacy titles, which may offer upside potential if successful.
In another report released today, Roth MKM also maintained a Hold rating on the stock with a $6.00 price target.
Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PLTK in relation to earlier this year.