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PLTK: Future Shareholder Returns Will Be Driven By Capital Return Strategy

PLTK: Rising Profit Margins Will Drive Renewed Market Optimism Going Forward

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PLTK
AnalystConsensusTarget
Not Invested
Published 09 Sep 2024

Update shared on 19 Dec 2025

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-39.2%
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0%

Narrative Update on Playtika Holding

Analysts have modestly revised their price target on Playtika Holding, nudging it higher by a low single digit percentage in dollar terms. This reflects steady assumptions for fair value, discount rate, revenue growth, profit margins, and future P/E multiples despite a lack of new Street research catalysts.

What's in the News

  • World Series of Poker free to play app launched a limited time collaboration with the National Football League, adding NFL themed missions, avatars, collectibles, puzzles, and a 13 week sweepstakes running through February 8, 2026 (company product announcement)
  • Management signaled ongoing interest in selective, accretive M&A while continuing to prioritize dividends and share repurchases in its capital allocation strategy, as discussed on the third quarter 2025 earnings call (company earnings call)
  • The company completed a buyback tranche of 3,323,110 shares, or 0.88% of shares outstanding, for $16.11 million under the repurchase program announced on May 9, 2024, including 1,262,000 shares repurchased in the third quarter of 2025 (company disclosure)
  • Playtika reaffirmed full year 2025 revenue guidance in the range of $2.70 billion to $2.75 billion, underscoring confidence in its existing growth trajectory (company guidance)

Valuation Changes

  • Fair Value Estimate remains unchanged at $5.92 per share, indicating no revision to the intrinsic value assessment.
  • The Discount Rate is effectively unchanged at 16.4%, signaling a stable view of the company’s risk profile and required return.
  • Revenue Growth is essentially unchanged and slightly negative at approximately 0.66%, reflecting a steady outlook for top line performance.
  • The Net Profit Margin is effectively flat at about 9.09%, implying no material change to expected profitability levels.
  • The future P/E remains unchanged at roughly 14.5x, indicating a consistent view of the appropriate earnings multiple for the stock.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.