Playtika downgraded to Neutral from Outperform at Baird

Baird analyst Colin Sebastian downgraded Playtika (PLTK) to Neutral from Outperform with a price target of $6, down from $9. The firm still sees meaningful platform value and potential for Playtika to reaccelerate organic growth over time, but says headwinds across its mobile gaming and “concerning” trends within core franchises warrant a more cautious stance on the shares. Without better visibility into new title performance later this year or more evidence of a recovery in monetization among top titles, the shares still struggle to outperform, the analyst tells investors in a research note. Meanwhile, consolidation in the mobile gaming industry may not provide the catalyst or support for Playtika’s valuation, adds Baird.