Israeli developer and publisher of mobile games Playtika received a higher investment rating. The company’s rating was raised from an unsatisfactory level (Underperform) to an average (Neutral). The stock market immediately reacted positively to this.
Recently, things have been going badly for Playtika. Only in the past, it cut three offices at once, lost a majority owner, closed the developers of Best Fiends, laid off 600 additional people and already this year missed a deal with Rovio.
Perhaps Omar Dessouky, a Bank of America security analyst who just upgraded the company’s rating, considered all these cuts and business failures to be the improvement of Playtika, which, after going public in 2021, lost a lot in price.
However, the analyst explains his actions by overestimating the overall situation in the market. According to him, the recession in the mobile games market will last less than he expected. By the end of this year, revenue from micropayments in mobile games will fall not by 6%, as previously predicted, but only by 1%.
The market reacted positively to the official position of Bank of America. After Omar’s statement, the value of Playtika shares increased by 8.9% to $12.57 per share. Recall that at the time of the company’s entry into the stock market, $27 was given for each of its shares.