Playtika stock price target raised to $4.75 from $4.50 at Goldman Sachs

Investing.com - Goldman Sachs raised its price target on Playtika Holding Corp. (NASDAQ:PLTK) to $4.75 from $4.50 on Friday, while maintaining a Neutral rating following the company’s third-quarter 2025 results. According to InvestingPro data, Playtika is currently trading at $4.18, suggesting the stock is undervalued compared to its Fair Value. Analysts have set targets ranging from $3.75 to $14, with an average upside potential of 20%.

The mobile gaming company reported quarterly results that were in line or ahead of estimates for both revenue and adjusted EBITDA. The performance was driven by strength in recently acquired and released titles, which offset continued declines in its Slotomania game franchise. Playtika’s revenue reached $2.73 billion over the last twelve months with a healthy 7.49% growth rate, while maintaining an impressive 72.5% gross profit margin.

Goldman Sachs noted that Playtika’s SuperPlay studio shows strong momentum and is on track to grow revenues by 60% compared to the $342 million baseline outlined when acquired. Meanwhile, Slotomania experienced a 21% quarter-over-quarter decline as management works to rebalance the game economy while reducing performance marketing. InvestingPro identifies that Playtika "pays a significant dividend to shareholders" with a remarkable 9.57% dividend yield, offering investors income potential while the company executes its growth strategy. Discover more ProTips and comprehensive analysis in Playtika’s Pro Research Report, available with an InvestingPro subscription.

The firm highlighted Playtika’s expanded collaboration with Disney and Pixar Games to develop a new title, though launch timing remains undisclosed. Playtika also reported progress in shifting revenue toward direct-to-consumer channels, with proprietary platforms now accounting for 31% of revenue, up from 25% in the second quarter. This strategic shift could further enhance the company’s free cash flow, which InvestingPro data shows is already strong with a 25% free cash flow yield.

Goldman Sachs identified key variables for future stock performance as execution on new titles, efforts to stabilize Slotomania, and capital allocation priorities, while suggesting more efficient digital advertising across mobile gaming could provide a long-term tailwind to Playtika’s advertising monetization. With a current ratio of 1.41, Playtika maintains liquid assets that exceed short-term obligations, positioning the company well to navigate through its ongoing transition while maintaining its financial health, which InvestingPro rates as "GOOD."

In other recent news, Playtika Holding Corp reported its Q3 2025 earnings, revealing mixed results. The company posted an earnings per share (EPS) of $0.11, which was below the forecasted $0.20, a 45% negative surprise. Despite this, revenue surpassed expectations, reaching $674.6 million compared to the anticipated $667.5 million. This revenue growth may have contributed to investor optimism, as reflected in the stock’s performance. There were no recent updates regarding mergers or acquisitions involving Playtika. Analyst firms have not provided any recent upgrades or downgrades for the company. These developments provide investors with key insights into Playtika’s financial performance and market reception.

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