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Recent Video Game IPO Stock Playtika Surges On Upbeat Analyst Reports

Newly public Playtika (PLTK) received positive reviews Tuesday as Wall Street analysts initiated coverage of the mobile video game publisher. PLTK stock jumped on the news.




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At least seven Wall Street firms began coverage of PLTK stock. Of those, six have buy ratings and one is neutral.

In afternoon trading on the stock market today, PLTK stock rose 5.5%, near 34.10.

“Playtika operates in the largest and fastest growing segment of video gaming — the $100 billion mobile gaming market,” Morgan Stanley analyst Brian Nowak said in a note to clients. He expects the market to experience a compound annual growth rate of 15% from 2019 through 2024.

PLTK Stock Has Formed IPO Base

“Playtika has established itself as the leader within social casino” games, Nowak said. It is now expanding into the casual gaming segment, he says. Nowak rates PLTK stock as overweight with a price target of 35.

Headquartered in Herzliya, Israel, Playtika went public on Jan. 15 with its shares priced at $27. It ended its first day of trading at 31.62.

PLTK stock has formed an IPO base with a buy point of 36.16, according to IBD MarketSmith charts. That buy point is 10 cents above its record high of 36.06, reached on the day of its initial public offering.

A Top Global Mobile Game Maker

“Playtika may not (yet) be a household video game name, but the company ranks as one of the top mobile game companies globally,” Baird analyst Colin Sebastian said in a note to clients. “Currently, Playtika operates nine of the top 100 highest grossing mobile games in the U.S., including five titles ranked first in their respective categories (slots, bingo, hidden objects, solitaire, and poker) with seven that are wholly-owned intellectual properties.”

Sebastian rates PLTK stock as outperform with a price target of 38.

UBS analyst Eric Sheridan gave buy-rated PLTK stock a Street-high price target of 40. He sees Playtika benefiting from long-term secular tailwinds such as the growing smartphone installed base and a new generation of gamers.

PLTK stock is on IBD’s IPO Leaders stock list.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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