Michael Pachter, an analyst from Wedbush, maintained the Buy rating on Playtika Holding (PLTK – Research Report). The associated price target remains the same with $11.50.
Michael Pachter has given his Buy rating due to a combination of factors including Playtika Holding’s strong performance and strategic financial decisions. Playtika’s recent quarterly results exceeded expectations, showcasing solid growth and a successful increase in direct-to-consumer (DTC) platform revenue. This growth aligns with the company’s strategic goal and demonstrates a positive shift in their revenue streams. Additionally, Playtika’s commitment to expand through acquisitions while maintaining a robust free cash flow highlights its potential for further growth and value creation.
Pachter also highlights the company’s efficient capital allocation, with the initiation of a dividend and a share repurchase program signaling confidence in its financial stability. Furthermore, Playtika’s focus on migrating to proprietary platforms has led to improved margins, and it is expected that this trend will continue as the company attracts more traffic to its DTC platforms. These factors, combined with upward adjustments in revenue and EBITDA estimates for the coming years, underpin Pachter’s optimistic outlook and the rationale behind the Buy rating for Playtika Holding.
Pachter covers the Communication Services sector, focusing on stocks such as fuboTV, Getty Images Holdings, and Playtika Holding. According to TipRanks, Pachter has an average return of -3.0% and a 45.82% success rate on recommended stocks.
In another report released today, Robert W. Baird also maintained a Buy rating on the stock with a $10.00 price target.
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Playtika Holding (PLTK) Company Description:
Playtika Holding Corp is engaged in the gaming business. Some of its games include Board Kings, House of Fun, Poker Heat, Slotomania, and Bingo Blitz.
