Playtika price target lowered to $11.50 from $14.75 at Wedbush

Wedbush lowered the firm’s price target on Playtika to $11.50 from $14.75 and keeps an Outperform rating on the shares. The firm believes Playtika is undervalued at current levels. The company is well positioned to leverage difficult industry dynamics through its M&A capabilities. Management intends to deploy between $600M-$1.2B in capital on M&A over the next three years and has a history of successful accretive acquisitions, suggesting to Wedbush that Playtika can return to delivering top- and bottom-line growth in the next two years. Investors remain skeptical, but as Playtika reinvests into its business in FY24 through increased marketing spend on its new and legacy titles and executes on M&A opportunities, the firm expects the company to demonstrate results.