Playtika price target lowered to $11 from $12 at Goldman Sachs

Goldman Sachs analyst Eric Sheridan lowered the firm’s price target on Playtika (PLTK) to $11 from $12 and keeps a Neutral rating on the shares. The company produced Q3 results that were mixed in nature with total revenue below consensus estimates, gross profit roughly inline, and Adjusted EBITDA solidly ahead, with revenue for the company’s casual game portfolio being flat and social casino down 7%, the analyst tells investors in a research note. Playtika continues to make progress with its direct-to-consumer platform, executed on two distinct M&A transactions and also announced a recent partnership for a title licensed into the Netflix (NFLX) ecosystem, though in the mean time investors will focus on the management’s comments that the broader industry dynamic remains challenging and on the rising potential for capital to be deployed into M&A as a “potential re-accelerant for revenue growth”, the firm added..