Citi Boosts Playtika Holding to Buy on Valuation and Catalysts
November 23, 2023
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Citi has given a significant boost to Playtika Holding ($NASDAQ:PLTK) with an upgrade from Neutral to Buy based on its valuation and catalysts. This news has caused the company’s share price to rise, likely due to investors’ positive reaction to the bank’s changes. Based in Israel, PLAYTIKA HOLDING is a leading mobile gaming company that specializes in creating slots, poker, and social casino games for mobile devices. Its flagship game, Slotomania, is one of the most popular mobile casino apps globally, with millions of active users. Recently, Playtika has been expanding into other areas of gaming such as augmented and virtual reality as well as esports.
They have also been making strategic acquisitions to strengthen their position in the gaming market. The bullish outlook from Citi further strengthens Playtika’s outlook and may help the company in the short-term. The potential catalysts that Citi has identified include the launch of new games and merchandise, ongoing cost optimization efforts, and the potential for an even larger audience of gamers. In light of this development, investors may be more inclined to invest in the company and could lead to further increases in its stock price in the near future.
Share Price
On Tuesday, PLAYTIKA HOLDING stock opened at $8.8 and closed at $8.7, up by 2.2% from its previous closing price of 8.5. This suggests that investors are bullish on the stock despite the uncertain market environment. Citi has also highlighted the company’s potential for growth, noting its strong balance sheet and promising market position.
Additionally, Citi believes that the gaming space could be a long-term beneficiary of the shift to digital entertainment due to the coronavirus pandemic, which would benefit PLAYTIKA HOLDING. Furthermore, Citi believes that the company is well-positioned to capitalize on the upcoming mobile gaming trend. These factors suggest that PLAYTIKA HOLDING has strong potential for growth, which explains why Citi has given it a Buy rating. This, combined with its attractive valuation, make the stock an attractive buy for investors looking for long-term growth potential. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Playtika Holding. More…
| Total Revenues | Net Income | Net Margin |
| 2.56k | 285.2 | 12.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Playtika Holding. More…
| Operations | Investing | Financing |
| 513.7 | -273.7 | -620.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Playtika Holding. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.98k | 3.26k | -0.77 |
Key Ratios Snapshot
Some of the financial key ratios for Playtika Holding are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.8% | 18.4% | 21.3% |
| FCF Margin | ROE | ROA |
| 16.7% | -108.7% | 11.4% |
Analysis
GoodWhale conducted an analysis of PLAYTIKA HOLDING‘s fundamentals and classified the company under the ‘rhino’ type according to the Star Chart. This type of company indicates moderate revenue or earnings growth. Investors who prefer steadier growth could be interested in a company such as PLAYTIKA HOLDING. PLAYTIKA HOLDING also has a high health score of 8/10, considering its cashflows and debt, which means it is capable of sustaining future operations in times of crisis. PLAYTIKA HOLDING’s performance across other metrics is quite good. The company is strong in profitability, medium in growth, and weak in assets and dividends. Overall, this makes PLAYTIKA HOLDING an attractive option for investors who are looking for a reliable source of steady returns. More…
Peers
Playtika Holding Corp, a company that specializes in developing social casino games, is in competition with Zengame Technology Holding Ltd, Santaro Interactive Entertainment Co, and MAG Interactive AB. These companies also develop social casino games and are Playtika Holding Corp’s main competitors.
– Zengame Technology Holding Ltd ($SEHK:02660)
As of 2022, Zengame Technology Holding Ltd has a market cap of 1.62B and a Return on Equity of 31.28%. The company operates in the online gaming industry and provides a platform for gamers to connect and compete with each other. Zengame Technology Holding Ltd is headquartered in Hong Kong.
– Santaro Interactive Entertainment Co ($OTCPK:STIE)
Santaro Interactive Entertainment Co is a publicly traded company with a market capitalization of 698.75k as of 2022. The company has a Return on Equity of 15.33%. Santaro Interactive Entertainment Co is a video game developer and publisher. The company was founded in 2006 and is headquartered in Hong Kong.
– MAG Interactive AB ($LTS:0GJ1)
Mag Interactive is a digital entertainment company that creates fun and engaging games for a global audience. The company has a portfolio of popular games that are played by millions of people around the world. Mag Interactive has a market cap of 670.32M as of 2022 and a ROE of 6.97%. The company’s games are available on a variety of platforms, including iOS, Android, and Facebook.
Summary
Playtika Holding (PLTK) has seen an increase in investor confidence, with Citi recently upgrading the stock from Neutral to Buy based on Playtika’s strong financials and attractive valuation. This move is also being driven by expectations of further catalysts such as increasing revenue streams, improving margins, and positive user sentiment. Analysts believe that these factors, along with the company’s strategic investments and product roadmap, could further drive investor returns in the coming quarters. Despite the current market volatility, Playtika remains well-positioned for long-term growth.
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