Why Playtika Holding Corp. (PLTK) Is Skyrocketing?

We recently published a list of 10 Stocks Outperform Broader Market on Wednesday. In this article, we are going to take a look at where Playtika Holding Corp. (NASDAQ:PLTK) stands against other stocks that outperform broader market on Wednesday.

The stock market finished in the red territory on Wednesday as investors sold off positions to mitigate risks from a fresh round of tariffs due in the next few days.

The tech-heavy Nasdaq fell the hardest, down 2.04 percent, followed by the S&P 500, down 1.12 percent. The Dow Jones declined by 0.31 percent.

According to President Donald Trump, all cars made outside of the US would be slapped with a 25-percent tariff beginning April 2.

Meanwhile, let us take a look at the 10 companies across mixed sectors that defied a broader market downturn, having registered modest to strong gains during the trading session.

To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume.

A close-up of a hand holding a mobile device with a gaming app open on the screen.

Playtika Holding Corp. (NASDAQ:PLTK)

Playtika Holding soared by 20.45 percent on Wednesday to finish at $5.30 apiece as investors cheered a rating upgrade for the company.

On Wednesday, Bank of America Securities upgraded its rating for PLTK to Buy from Underperform previously and raised the price target to $6.5 from $6 previously.

The new price target represents a 22.6-percent upside from its latest closing price.

According to the report, PLTK boasts the industry’s highest profitability with 30 percent EBITDA margins, the industry’s largest direct-to-consumer platform, as well as three of the largest and longest-running franchises in the mobile gaming industry.

“It operates within the mature, but still growing mobile gaming industry, which we expect to grow at least 4% Y/Y for the foreseeable future,” the report said.

PLTK is an Israel-based company specializing in the development and publication of mobile games.

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