Playtika Price Target Downgrade Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy PLTK?
Source: Yahoo Finance
- Quarterly Performance: Playtika reported Q4 2025 revenue of $678 million, reflecting a 4.4% year-over-year increase and exceeding estimates by $16.9 million, indicating stable growth potential in the mobile gaming sector.
- Earnings Outlook: Despite strong revenue, the EPS of negative $0.82 fell short of expectations by $0.96, highlighting challenges in profitability that may affect investor confidence moving forward.
- Price Target Adjustments: Morgan Stanley lowered its price target on Playtika from $5.5 to $5, while Baird reduced its target from $5 to $4, both maintaining Hold and Neutral ratings, reflecting a cautious market outlook on the company's future performance.
- 2026 Guidance: Management expects 2026 revenue to range between $2.7 billion and $2.8 billion, with adjusted EBITDA projected between $730 million and $770 million, although the first quarter's EBITDA guidance was lowered due to marketing seasonality, indicating a cautious approach to future growth.
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Analyst Views on PLTK
Wall Street analysts forecast PLTK stock price to rise
5 Analyst Rating
2 Buy
3 Hold
0 Sell
Moderate Buy
Current: 3.400
Low
3.75
Averages
7.25
High
14.00
Current: 3.400
Low
3.75
Averages
7.25
High
14.00
About PLTK
Playtika Holding Corp is a developer of mobile games. The Company’s Playtika Boost Platform provides live game operations services and a proprietary technology to support portfolio of games. The Company owns and manages 15 games. It includes both casual and casino-themed games. The Company also provides free-to-play mobile games. The Company distributes its games through various web and mobile platforms such as Apple, Facebook, Google, and other web and mobile platforms. The Company’s games include Slotomania, Bingo Blitz, House of Fun, Caesars Slots, World Series of Poker, Best Fiends, June’s Journey, Solitaire Grand Harvest, and Board Kings. The Company’s games are available on iOS App Store and Google Play Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Playtika Reports Q4 2025 Earnings with Mixed Results
- Earnings Report: Playtika's Q4 2025 earnings revealed a GAAP EPS of negative $0.82, missing estimates by $0.96, while revenue of $678.8 million grew 4.44% year-over-year, exceeding consensus by $16.9 million.
- DTC Platform Growth: The DTC platform revenue reached $250.1 million, reflecting a significant 43.2% year-over-year increase, indicating strong progress in direct-to-consumer operations that bolstered overall revenue.
- User Growth: Average daily paying users increased by 5.3% year-over-year to 357,000, with paying conversion rates rising from 4.3% to 4.5%, demonstrating effective user acquisition and retention strategies.
- Future Outlook: Management anticipates fiscal 2026 revenue between $2.70 billion and $2.80 billion, with adjusted EBITDA projected at $730 million to $770 million, reflecting confidence in future growth despite current profitability challenges.
See More
Playtika Price Target Downgrade Analysis
- Quarterly Performance: Playtika reported Q4 2025 revenue of $678 million, reflecting a 4.4% year-over-year increase and exceeding estimates by $16.9 million, indicating stable growth potential in the mobile gaming sector.
- Earnings Outlook: Despite strong revenue, the EPS of negative $0.82 fell short of expectations by $0.96, highlighting challenges in profitability that may affect investor confidence moving forward.
- Price Target Adjustments: Morgan Stanley lowered its price target on Playtika from $5.5 to $5, while Baird reduced its target from $5 to $4, both maintaining Hold and Neutral ratings, reflecting a cautious market outlook on the company's future performance.
- 2026 Guidance: Management expects 2026 revenue to range between $2.7 billion and $2.8 billion, with adjusted EBITDA projected between $730 million and $770 million, although the first quarter's EBITDA guidance was lowered due to marketing seasonality, indicating a cautious approach to future growth.
See More
Playtika Reports Strong Q4 2025 Earnings with Strategic Shift
- Strong Financial Performance: Playtika reported Q4 2025 revenue of $678.8 million, reflecting a 0.6% sequential increase and a 4.4% year-over-year rise, demonstrating stable revenue growth during its transformation, despite a net loss of $309.3 million primarily due to non-cash adjustments related to SuperPlay.
- D2C Business Growth: Direct-to-consumer (D2C) revenue reached $250.1 million, growing 19.5% sequentially and 43.2% year-over-year, accounting for 36.8% of total revenue in Q4, indicating significant success in the strategic shift towards D2C, which is expected to drive future revenue growth.
- Significant Contribution from SuperPlay: SuperPlay achieved record revenues in Q4, with Disney Solitaire up 21.4% quarter-over-quarter, becoming the second-largest game in the portfolio, and generating $573 million in revenue for the full year, a 67.5% increase from the baseline, highlighting its critical role in the company's strategy.
- Positive 2026 Outlook: The company projects 2026 revenue between $2.7 billion and $2.8 billion, with adjusted EBITDA expected to be $730 million to $770 million; while suspending quarterly dividends to maintain flexibility, it plans to invest in high-return opportunities, reflecting confidence in future growth.
See More
Playtika Reports Q4 Earnings Miss with Revenue Beat
- Earnings Miss: Playtika reported a Q4 GAAP EPS of -$0.82, missing expectations by $0.96, indicating challenges in profitability that could undermine investor confidence.
- Revenue Growth: Despite the earnings miss, Playtika's revenue reached $678.8M, up 4.4% year-over-year, exceeding market expectations by $16.9M, suggesting resilience in revenue generation.
- Workforce Reduction: The company announced a 15% workforce reduction aimed at cutting operational costs and improving efficiency, reflecting management's cautious stance in the current market environment.
- Market Valuation: Despite profitability pressures, analysts believe Playtika's stock is undervalued, with its dividend strength and direct-to-consumer momentum potentially supporting future recovery.
See More
Playtika Reports Q4 and FY2025 Financial Results with Key Metrics
- Revenue Growth: Playtika's total revenue for FY2025 reached $2.755 billion, reflecting an 8.1% year-over-year increase, indicating the company's sustained growth potential in the mobile gaming market despite competitive pressures.
- DTC Revenue Performance: Direct-to-Consumer revenue amounted to $814.5 million, up 17.3% year-over-year, showcasing effective user acquisition and retention strategies that enhance its market position.
- Net Loss Situation: The net loss for FY2025 was $206.4 million, contrasting with a net income of $162.2 million in the previous year, highlighting high costs associated with expansion and acquisitions, necessitating attention to future profitability recovery.
- Record High Free Cash Flow: FY2025 free cash flow reached $481.6 million, a 21.3% increase from the prior year, providing the company with greater capital flexibility to support future investments and strategic development.
See More
Playtika Set to Announce Q4 Earnings on February 26
- Earnings Announcement: Playtika is set to release its Q4 2023 earnings report on February 26 before market open, with consensus EPS estimate at $0.14 and revenue forecast at $661.9 million, reflecting a 1.8% year-over-year growth.
- Performance Beat Rates: Over the past year, Playtika has exceeded EPS estimates 50% of the time and revenue estimates 75% of the time, indicating a strong track record of performance against market expectations.
- Workforce Reduction: The company has announced a 15% workforce reduction aimed at enhancing operational efficiency and reducing costs, which is crucial for maintaining profitability in a competitive landscape.
- Investment Insights: Analysts suggest that Playtika is undervalued, particularly due to its dividend strength and momentum in direct-to-consumer (D2C) initiatives, potentially offering long-term growth opportunities for investors.
See More
Playtika Reports Q4 2025 Earnings with Mixed Results
- Earnings Report: Playtika's Q4 2025 earnings revealed a GAAP EPS of negative $0.82, missing estimates by $0.96, while revenue of $678.8 million grew 4.44% year-over-year, exceeding consensus by $16.9 million.
- DTC Platform Growth: The DTC platform revenue reached $250.1 million, reflecting a significant 43.2% year-over-year increase, indicating strong progress in direct-to-consumer operations that bolstered overall revenue.
- User Growth: Average daily paying users increased by 5.3% year-over-year to 357,000, with paying conversion rates rising from 4.3% to 4.5%, demonstrating effective user acquisition and retention strategies.
- Future Outlook: Management anticipates fiscal 2026 revenue between $2.70 billion and $2.80 billion, with adjusted EBITDA projected at $730 million to $770 million, reflecting confidence in future growth despite current profitability challenges.
See More
Playtika Price Target Downgrade Analysis
- Quarterly Performance: Playtika reported Q4 2025 revenue of $678 million, reflecting a 4.4% year-over-year increase and exceeding estimates by $16.9 million, indicating stable growth potential in the mobile gaming sector.
- Earnings Outlook: Despite strong revenue, the EPS of negative $0.82 fell short of expectations by $0.96, highlighting challenges in profitability that may affect investor confidence moving forward.
- Price Target Adjustments: Morgan Stanley lowered its price target on Playtika from $5.5 to $5, while Baird reduced its target from $5 to $4, both maintaining Hold and Neutral ratings, reflecting a cautious market outlook on the company's future performance.
- 2026 Guidance: Management expects 2026 revenue to range between $2.7 billion and $2.8 billion, with adjusted EBITDA projected between $730 million and $770 million, although the first quarter's EBITDA guidance was lowered due to marketing seasonality, indicating a cautious approach to future growth.
See More
Playtika Reports Strong Q4 2025 Earnings with Strategic Shift
- Strong Financial Performance: Playtika reported Q4 2025 revenue of $678.8 million, reflecting a 0.6% sequential increase and a 4.4% year-over-year rise, demonstrating stable revenue growth during its transformation, despite a net loss of $309.3 million primarily due to non-cash adjustments related to SuperPlay.
- D2C Business Growth: Direct-to-consumer (D2C) revenue reached $250.1 million, growing 19.5% sequentially and 43.2% year-over-year, accounting for 36.8% of total revenue in Q4, indicating significant success in the strategic shift towards D2C, which is expected to drive future revenue growth.
- Significant Contribution from SuperPlay: SuperPlay achieved record revenues in Q4, with Disney Solitaire up 21.4% quarter-over-quarter, becoming the second-largest game in the portfolio, and generating $573 million in revenue for the full year, a 67.5% increase from the baseline, highlighting its critical role in the company's strategy.
- Positive 2026 Outlook: The company projects 2026 revenue between $2.7 billion and $2.8 billion, with adjusted EBITDA expected to be $730 million to $770 million; while suspending quarterly dividends to maintain flexibility, it plans to invest in high-return opportunities, reflecting confidence in future growth.
See More
Playtika Reports Q4 Earnings Miss with Revenue Beat
- Earnings Miss: Playtika reported a Q4 GAAP EPS of -$0.82, missing expectations by $0.96, indicating challenges in profitability that could undermine investor confidence.
- Revenue Growth: Despite the earnings miss, Playtika's revenue reached $678.8M, up 4.4% year-over-year, exceeding market expectations by $16.9M, suggesting resilience in revenue generation.
- Workforce Reduction: The company announced a 15% workforce reduction aimed at cutting operational costs and improving efficiency, reflecting management's cautious stance in the current market environment.
- Market Valuation: Despite profitability pressures, analysts believe Playtika's stock is undervalued, with its dividend strength and direct-to-consumer momentum potentially supporting future recovery.
See More
Playtika Reports Q4 and FY2025 Financial Results with Key Metrics
- Revenue Growth: Playtika's total revenue for FY2025 reached $2.755 billion, reflecting an 8.1% year-over-year increase, indicating the company's sustained growth potential in the mobile gaming market despite competitive pressures.
- DTC Revenue Performance: Direct-to-Consumer revenue amounted to $814.5 million, up 17.3% year-over-year, showcasing effective user acquisition and retention strategies that enhance its market position.
- Net Loss Situation: The net loss for FY2025 was $206.4 million, contrasting with a net income of $162.2 million in the previous year, highlighting high costs associated with expansion and acquisitions, necessitating attention to future profitability recovery.
- Record High Free Cash Flow: FY2025 free cash flow reached $481.6 million, a 21.3% increase from the prior year, providing the company with greater capital flexibility to support future investments and strategic development.
See More
Playtika Set to Announce Q4 Earnings on February 26
- Earnings Announcement: Playtika is set to release its Q4 2023 earnings report on February 26 before market open, with consensus EPS estimate at $0.14 and revenue forecast at $661.9 million, reflecting a 1.8% year-over-year growth.
- Performance Beat Rates: Over the past year, Playtika has exceeded EPS estimates 50% of the time and revenue estimates 75% of the time, indicating a strong track record of performance against market expectations.
- Workforce Reduction: The company has announced a 15% workforce reduction aimed at enhancing operational efficiency and reducing costs, which is crucial for maintaining profitability in a competitive landscape.
- Investment Insights: Analysts suggest that Playtika is undervalued, particularly due to its dividend strength and momentum in direct-to-consumer (D2C) initiatives, potentially offering long-term growth opportunities for investors.
See More
