Playtika Holding: Buy Rating Amid Challenges and Growth Opportunities Amidst Underperformance and Diversification Efforts

TD Cowen analyst Doug Creutz reiterated a Buy rating on Playtika Holding with a $14.00 price target. Despite recent underperformance in their social casino segment, the company has shown resilience with a notable increase in casual game revenue. Management's strategic initiatives and focus on cost management are seen as positive steps toward growth. Creutz is a 5-star analyst with a 65.33% success rate. Wedbush also maintained a Buy rating with an $11.50 price target.

Playtika Holding Corp (NASDAQ: PLTK), a leading provider of free-to-play mobile gaming, reported mixed financial results for Q2 2025, with revenue reaching $696.0 million, representing an 11.0% year-over-year increase but a 1.4% sequential decrease [1]. Despite the mixed performance, analysts from TD Cowen and Wedbush maintained their Buy ratings, citing strategic initiatives and cost management as positive signs for growth.

Doug Creutz, a 5-star analyst with a 65.33% success rate at TD Cowen, reiterated a Buy rating on Playtika with a $14.00 price target. He noted that while the social casino segment has underperformed, there has been a notable increase in casual game revenue. Creutz highlighted management's strategic initiatives and focus on cost management as key factors driving the company's resilience [2].

Similarly, Wedbush analysts maintained their Buy rating with an $11.50 price target, acknowledging the company's strategic moves and cost management efforts. They also emphasized the potential for growth in the casual gaming segment, which has shown promising signs of recovery [3].

The company's Direct-to-Consumer (DTC) revenue reached $175.9 million, showing 1.3% year-over-year growth. However, GAAP Net Income declined 61.7% YoY to $33.2 million, and Adjusted EBITDA decreased 12.6% YoY to $167.0 million. The company's new game, Disney Solitaire, achieved a $100 million annual run-rate, and Playtika increased its long-term DTC revenue target to 40% from 30% [1].

Playtika revised its 2025 revenue guidance to $2.70-$2.75 billion while maintaining Adjusted EBITDA guidance of $715-$740 million. The company declared a quarterly dividend of $0.10 per share, reflecting its commitment to shareholder value [1].

The analysts' positive outlook on Playtika reflects their belief in the company's ability to navigate the challenges in the social casino segment and capitalize on growth opportunities in the casual gaming space. As Playtika continues to invest in strategic initiatives and cost management, investors should closely monitor the company's progress and the evolving market landscape.

References:
[1] https://www.stocktitan.net/news/PLTK/
[2] https://www.stocktitan.net/news/PLTK/
[3] https://www.stocktitan.net/news/PLTK/