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Bank of America (BAC) upgraded mobile games company Playtika (PLTK) to Buy from Underperform and increased its price target for the company to $6.50 from $6. Market Domination hosts Julie Hyman and Josh Lipton discuss the details.
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All right, let's get to uh our call of the day now. That's Bank of America, giving Playtika a double uh upgrade, the note calling the stock, a nice house in an undesirable neighborhood, Julie. So, the rare double upgrade, goes from underperform to buy on the mobile games company. They talk about its unusually high free cash flow yield, highest profitability within the industry, largest DTTC platform.
Direct to consumer, right? Exactly. And they say also three of the largest and longest running franchises in mobile gaming history. They also say that the company's forecast for this year is highly conservative. They say we estimate it implies a 6% year-over-year organic decline in 2025, and they say that's, they don't think that's going to happen. They say this year the company expects to improve its capital allocation, uh restart growth of genre-leading franchises, and harvest the long tail of smaller games.
Yeah, and the industry it works in, mobile gaming industry, they say, yes, it's mature, but it's still growing, Julie. And that's enough for a buy.
Okay.
