It’s been a strange time in the video game market lately, and there’s no exception for Playtika Holding Corp. (NASDAQ:PLTK). With most of 2022’s releases best described as “delayed to 2023”, watching video game makers scramble to stay alive in the meantime has been a bit of a challenge. Playtika, however, managed to recover nicely, making big gains in Tuesday’s trading.
The best news for Playtika right now is that B of A Securities lifted its appraisal of the company. The rating moved from “underperform” to “neutral.” This was largely due to Playtika’s own spending discipline, reports note. Such discipline was exemplified by Playtika’s plans to lay off 15% of its over 3,700-member workforce. It was further underscored by Playtika consolidating operations and allowing its Wooga game studio to handle new game concepts.
Further, a note direct from Playtika revealed that the company removed three titles from development. This was to clear up resources to focus on what the company called “…strategic high-growth potential new games investments”. The company is also taking increased care with its advertising expenses. In addition, analysts expect a smaller drop in revenue than they did previously.
Right now, things are looking up at Playtika. The larger body of analysts are cheering the company on as well. Currently, Playtika has a Moderate Buy analyst consensus rating with 86.39% upside potential, thanks to its average price target of $16.44.
