Benchmark on PlayStudios (MYPS): 'We think MYPS could be a potential acquisition candidate', Names Microsoft (MSFT) & Take-Two (TTWO) as Potential Acquirers

Benchmark analyst Mike Hickey reiterated a Buy rating and $9.00 price target on PlayStudios (NASDAQ: MYPS).

The analyst comments "We think MYPS could be a potential acquisition candidate as the industry consolidates. ATVI holds an approximate 12.677M shares of MYPS, nearly 10% of the shares outstanding. We think MSFT could be a potential acquirer of MYPS subsequent ATVI close, considering MSFT’s desire to build mobile gaming exposure and talent. We think TTWO could be a potential acquirer of MYPS subsequent ZNGA close, considering synergies between ZNGA’s social casino genre and MYPS’s playAwards scheme. Additional holders include MGM Resorts International (MGM), which holds an estimated 15.15M shares of MYPS. Playtika (PLTK), a MYPS competitor, previously announced they were evaluating strategic alternatives, including the potential sale of the company, stock traded up 18%. MYPS has a strong balance sheet, a profitable portfolio of Live Services, a unique monetization scheme, development talent, and a meaningful valuation discount."

For an analyst ratings summary and ratings history on PlayStudios click here. For more ratings news on PlayStudios click here.

Shares of PlayStudios closed at $5.75 yesterday.

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