BTIG analyst Clark Lampen has maintained their neutral stance on PLTK stock, giving a Hold rating on November 2.
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Clark Lampen has given his Hold rating due to a combination of factors impacting Playtika Holding’s financial outlook. The company is experiencing weaker trends in daily active users (DAUs) across its portfolio, particularly with its largest title, Slotomania, which has not shown signs of recovery from its previous declines. This decline in user engagement poses a challenge to the company’s revenue growth, leading to more conservative revenue forecasts that align with the lower end of Playtika’s guidance.
Despite these challenges, there are positive aspects such as an increase in direct-to-consumer (DTC) platform visitation, notably driven by Solitaire Grand Harvest. This shift towards DTC could help stabilize EBITDA and free cash flow, even if it does not immediately improve top-line revenue. Additionally, the company is expected to reduce marketing expenditures following a less effective push in 2025, which could further support profitability. These mixed signals, with potential for both risk and stability, underpin the Hold rating as the company navigates these transitional dynamics.
In another report released on November 2, Freedom Capital Markets also initiated coverage with a Hold rating on the stock with a $3.75 price target.