Playtika stock price target lowered to $4 from $5.50 at UBS

Published 11/09/2025, 14:54
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Investing.com - UBS lowered its price target on Playtika Holding Corp. (NASDAQ:PLTK) to $4.00 from $5.50 on Thursday, while maintaining a Neutral rating on the mobile gaming company. The stock, currently trading at $3.64, sits near its 52-week low of $3.52, though InvestingPro analysis suggests the stock is undervalued at current levels.

The price target reduction follows Playtika’s second-quarter results, which showed improved performance in casual games but accelerating declines in Slotomania and other social casino titles.

UBS noted that Playtika management lowered its 2025 revenue outlook by approximately 3.5% but maintained its EBITDA target, citing cost reduction efforts and an increasing direct-to-consumer mix that is expected to reach 40% long-term compared to 25% currently.

The investment bank now forecasts 7% revenue growth for Playtika in 2025 (or approximately 11% declines excluding SuperPlay) and a 5% decline in Adjusted EBITDA, compared to the 2-6% declines implied by management’s outlook.

UBS expects Playtika’s EBITDA to remain flat in 2026 as marketing spend stays elevated to support improved revenue performance, with newer intellectual property working toward profitability that year while legacy titles continue to face pressure.

In other recent news, Playtika Holding Corp reported its Q2 2025 earnings, which fell short of analysts’ expectations. The company announced an earnings per share (EPS) of $0.09, significantly below the forecasted $0.19, reflecting a negative surprise of 52.63%. Additionally, Playtika’s revenue for the quarter was $696 million, missing the anticipated $705.4 million by 1.33%. These earnings and revenue results highlight a challenging quarter for the company. The market responded to these results with a notable decline in the stock price during pre-market trading. Investors and analysts are closely monitoring these developments as they assess Playtika’s financial performance. While no specific analyst upgrades or downgrades were mentioned, the earnings miss may prompt further analysis from financial firms. These recent developments are crucial for investors to consider in their evaluation of Playtika’s future prospects.

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