Playtika Poised for Another Soft Quarter as Core Games Continue to Decline, Wedbush Says

MT Newswires Live11-01

Playtika (PLTK) is expected to report another soft quarter in Q3, with core games continuing to decline while the company executes turnaround efforts and refocuses on monetization over user growth, Wedbush said in a note Friday.

The company's investments will likely yield benefits, but the timeline and trajectory for a core rebound are "somewhat nebulous," analysts said.

On the other hand, recent acquisitions, upcoming titles, and a higher direct-to-consumer share are likely to drive revenue and profit growth for the next several years, the firm said.

Wedbush said it expects Q3 revenue and adjusted earnings before interest, taxes, depreciation and amortization to be above consensus, but also sees some downside risk due to weak performance for some key titles, worsened by lower user acquisition spend.

Playtika is scheduled to report its Q3 results on Nov. 6.

Wedbush reiterated an outperform rating on the stock, with a $7 price target.

Price: 3.75, Change: +0.04, Percent Change: +0.94

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