Investors should snap up Playtika shares after a recent sell-off, according to Bank of America. Analyst Omar Dessouky issued a rare double upgrade to buy from underperform for the mobile gaming stock. Dessouky also lifted his price target by 50 cents to $6.50, which suggests shares of the stock can surge 47.7%. With the call, Dessouky stands out on Wall Street. The majority of analysts polled by LSEG have hold ratings. Dessouky pointed out that Playtika has the industry's highest profitability and biggest direct-to-consumer platform. The company, which operates brands such as Bingo Blitz and Caesars Slots, also has "three of the largest and longest running franchises in mobile gaming history," according to the analyst. He said the stock is in an industry that is "mature" but "still growing," with annual growth of at least 4% expected going forward. For Playtika in particular, he said further downside to shares is likely limited given the management's strong reputation. In other words, the stock is a "nice house in (an) undesirable neighborhood on sale," Dessouky said to clients in a Wednesday note. The stock should see valuation upside if the growth strategy goes as planned, according to Dessouky. However, he cautioned that a lack of clarity around intentions from the largest shareholder creates risk for the dividend. Shares surged around 7% before the bell on Wednesday. However, the stock has tumbled more than 36% in 2025, part of a recent decline that Dessouky chalked up in part to concerns about a large investor exiting and traders preferring mobile ad network assets to publishers. PLTK YTD mountain Playtika, year to date Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today's dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You'll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
