UBS Lowers PT on Playtika Holding Stock from $5.5 to $4, Keeps Natural Rating

Playtika Holding Corp. (NASDAQ:PLTK) is one of the 12 Best NASDAQ Penny Stocks to Buy According to Hedge Funds. On September 11, UBS lowered the price target on Playtika Holding Corp. (NASDAQ:PLTK) from $5.5 to $4, keeping its Neutral rating on the stock.

Chris Schoell from UBS retains the rating on PLTK with a slight adjustment in the price target. During the second quarter of FY2025, the company’s legacy portfolio, particularly Slotomania, experienced a 39.4% decline from a year ago. The company is focused on its efforts to stabilize and revive the title. If Playtika is successful in materializing its legacy portfolio, it would be a major boost for the company in the slot category. Whereas, Bingo Blitz revenue soared 2.9% year-over-year.

UBS Lowers PT on Playtika Holding Stock from $5.5 to $4, Keeps Natural Rating

Schoell still remains positive about Playtika Holding after its strategic shift towards Direct-to-Consumer (DTC) revenue showed minimal growth at 1.3% during Q2 from a year ago. The company has raised its long-term DTC target from 30% to 40%. Moreover, the company’s user engagement improved significantly, with a 26.8% growth in average daily paying users reaching 378,000. However, this growth wasn’t reflected in financial gains.

Analysts at BofA, Wedbush, and TD Cowen all remain bullish on PLTK with a Buy rating, with each having a price target set at $5.5, $11.5, and $14, respectively. As of September 12, Playtika Holding Corp.’s (NASDAQ:PLTK) average price target of $5.25, based on analysts’ estimates, implies an upside of almost 40% from current levels.

Playtika Holding Corp. (NASDAQ:PLTK) develops mobile games together with its subsidiaries. The company distributes its games to the end customers via various web and mobile platforms and DTC platforms.

While we acknowledge the potential of PLTK to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PLTK and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.