Playtika Stock On Track To Record Biggest Single-Day Gain Ever After BofA’s Double Upgrade: Retail’s Exuberant
BofA said Playtika has the highest profitability in the industry, with 30% EBITDA margins, and it is the industry’s largest direct-to-consumer platform.
FollowShares of Playtika Holding Corp. (PLTK) surged on Wednesday despite the tech sector's weakness following BofA Securities' upbeat commentary.
Israel-based Playtika is a mobile game developer that owns a portfolio of casual and social casino-themed games and distributes them through web, mobile, and direct-to-consumer platforms.
On Wednesday, BofA analysts double upgraded Playtika stock to ‘Buy’ from ‘Underperform’ and upped the price target to $6.50 from $6, TheFly reported.
The brokerage said Playtika has the highest profitability in the industry, with 30% earnings before interest, taxes, depreciation, and amortization (EBITDA) margins, and it is the industry’s largest direct-to-consumer platform.
It also noted that the company has three of the largest and longest-running franchises in mobile gaming history.
BofA thinks the downside to the shares is limited due to the next 12 months' free cash flow yield remaining at an all-time high of 21% and the 9% dividend yield.
According to the analyst, the recent "share price dislocation" has been driven by the exit of a large shareholder in low trading liquidity, concerns that Playtika's transition to growth has taken too long, and investor preference for mobile ad network assets over publishers.
Playtika stock, which moved sideways from the start of 2025, pulled back along with the broader market weakness in mid-February. The stock opened sharply lower on Feb. 27, when the company reported its fourth-quarter results that showed an earnings miss.
The stock has been trending lower since.
On Stocktwits, retail sentiment toward Playtika stock reversed to ‘extremely bullish’ (87/100) from ‘bearish’ a day ago, and the message volume improved notably to ‘extremely high.’
PLTK sentiment and message volume March 26, as of 11:56 am ET | Source: Stocktwits
While stating that they took some profits, a bullish watcher said the stock could go higher.
Playtika climbed 21.94% to $5.37 by Wednesday noon. If the gains are sustained through the session, the stock is on track to record its biggest one-day jump ever, according to Koyfin. The stock is down over 20% this year.
The Koyfin-compiled consensus price target for the stock is $8.20, implying scope for an 86% upside potential.
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