UPDATE: BofA Securities Double Downgrades SciPlay Corp. (SCPL) to Underperform

February 17, 2021 6:03 AM EST
Get Alerts SCPL Hot Sheet
Price: $17.00 -2.13%

Rating Summary:
    6 Buy, 4 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 17 | Down: 14 | New: 42
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(Updated - February 17, 2021 6:13 AM EST)

BofA Securities analyst Ryan Gee downgraded SciPlay Corp. (NASDAQ: SCPL) from Buy to Underperform with a price target of $20.00.

The analyst comments "EA’s recent acquisition of GLUU for $2.1bn has had positive implications for the mobile gaming space. First, digital gaming peer multiples have expanded to 14x ‘22E EBITDA vs. 12x in early Feb (SCPL 13x vs. 10x). That EA offered ~17x ‘22E EBITDA for a studio with avg. margin, content, operations signals the premium (~36%) others could expect from the right team. Second, EA’s deal has re-ignited expectations of further consolidation in mobile to “learn-up” ahead of Apple’s iOS privacy changes. EA and ZNGA, along with casino peers incl. PLTK and Huuuge are just a few that have stated publicly their intentions to be more active with M&A. While the narrative in the press around SCPL as a strategic asset for someone in or out of mobile gaming seems plausible to us, we believe (per our discussions with other companies in the mobile space) the focus of mobile M&A will be more toward Casual category and/or mid-core publishers with strong UA (user acquisition), rather than social casino, and SCPL’s portfolio may only fit with a select number of mobile gaming peers."

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

Shares of SciPlay Corp. closed at $20.64 yesterday.


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