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.

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.

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