Playtika Upgraded by BofA, Shares Surge With 23% Upside to $6.50 Target
Shares of Playtika Holding Corp. (PLTK, Financials) climbed more than 21% on Wednesday after Bank of America raised its rating on the mobile game developer by two levels, moving it from underperform to buy and setting a price target of $6.50representing a 23% upside from the latest closing price of $5.28. In a research note from March 26, Bank of America stated that Playtika is part of a well-established but still growing mobile gaming industry, which is expected to grow by at least 4% each year. Analysts highlighted Playtika's top profitability in the industry, its position as the largest direct-to-consumer platform, and its ownership of three of the oldest mobile game franchises as important strengths.The investment bank said that the previous decline in Playtika's stock price was due to a big shareholder leaving in a low-liquidity market, the long process of returning to growth, and investors favoring mobile advertising companies like AppLovin over game publishers.Bank of America projected that Playtika will make $2.85 billion in bookings and $740 million in earnings before interest, taxes, depreciation, and amortization in 2025, using data from January and February provided by third parties.