Playtika Holding Corp. (PLTK) PT Lowered to $22 at BTIG

BTIG analyst Clark Lampen lowered the price target on Playtika Holding Corp. (NASDAQ: PLTK) to $22.00 (from $29.00) while maintaining a Buy rating.

The analyst commented, "We’re refreshing estimates for 4Q21 and 2022 with a reduction to our forecasts, price target ($29 to $22), and our model, factoring in modest contributions from ’22 launches and little improvement in Redecor performance. Following peer M&A and an announcement that PLTK’s largest shareholder is exploring a sale of 15-25% of outstanding shares, we anticipate more questions around M&A and expect PLTK to remain acquisitive as an independent operator. Highlights: 1) We’re lowering estimates for 4Q21/2022, due to Casino performance, partially mitigated by Casual title upside; 2) Growth of Redecor and contributions from new titles in soft launch will help ’22 top-line growth, and we model modest improvement/contributions, which may be conservative; 3) 10-Q disclosure, coupled with historical performance improvement (more detail in the body of our report), suggests PLTK should continue to leverage balance sheet capacity and Boost to remain acquisitive; potentially scooping up studios that experience pressure in an increasingly competitive ’22 mobile ecosystem with more challenging user acquisition dynamics."

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