Latest news with #OmarDessouky
CNBC
4 days ago
- Business
- CNBC
This metaverse leader is primed for even more gains going forward, Bank of America says
Roblox has "structural advantages" that can drive the stock higher, according to Bank of America. The bank upped its price target on the online game platform to $103 per share from $86 and reiterated its buy rating. BofA's forecast calls for roughly 13% upside from Wednesday's close. "We expect to see talent and capital flow into the RBLX ecosystem faster than mobile app & console games for the foreseeable future," analyst Omar Dessouky wrote in a Wednesday note. "The string of strong results and share price rally appears to have catalyzed interest among new long-term oriented growth investors." RBLX YTD mountain Roblox stock in 2025. Dessouky highlighted the company's efforts within the metaverse, which he said could be a significant growth driver as adoption of the company's platform expands. "RBLX is the 'Metaverse' category leader," Dessouky said. "We see an extended runway for mid-20% growth as users worldwide adopt Roblox's Metaverse, in a virtuous cycle that will draw developers, brands, and merchants to the platform." "Roblox is not saddled with legacy media businesses that require transition to a Metaverse, and can thus allocate 100% of its resources toward maintaining Metaverse product leadership," the analyst added. "Rapid productization of innovations could result in consistent upside to growth estimates." Shares have surged more than 57% in 2025. Most analysts covering Roblox have a buy or strong buy rating, according to LSEG. However, the average price target implies downside of more than 18%.
Yahoo
28-03-2025
- Business
- Yahoo
Why Is Mobile Games Giant Playtika Soaring On Wednesday?
BofA Securities analyst Omar Dessouky double-upgraded the shares of Playtika Holding Corp (NASDAQ:PLTK) on Wednesday from Underperform to Buy and raised the price forecast from $6 to $6.50. The company has the highest profitability in the industry, with 30% EBITDA margins, and is home to some of the largest mobile gaming franchises, the analyst said. Despite being in a mature yet growing industry, PLTK's 21% FCF yield and 9% dividend yield suggest limited downside. The stock's recent dislocation is attributed to shareholder exits, delayed growth, and investor preference for ad network assets, opined the analyst. Also Read: The analyst has increased the CY25 forecast for PLTK to $2.85 billion in Bookings and $740 million in EBITDA, based on January and February 3P data. The company's guidance appears conservative, suggesting a 6% Y/Y organic decline in CY25, worse than the -5% Y/Y decline in CY24. The analyst's estimate assumes SuperPlay generates $465 million in bookings (+22% Y/Y), while the existing portfolio declines by 5% Y/Y. Currently, SuperPlay is tracking +43% Y/Y. Shareholder activism poses a potential risk to the dividend, as PLTK's largest shareholder (63%) has unclear motivations. While management has outlined a 50% capital return and 50% M&A framework for FCF use, it is not a formal policy and could change, noted the analyst. Price Action: PLTK shares traded higher by 19.88% at $5.27 at last check Wednesday. Read Next:Photo by Ground Picture on Shutterstock. Date Firm Action From To Feb 2022 Credit Suisse Maintains Outperform Dec 2021 DA Davidson Initiates Coverage On Buy Dec 2021 Macquarie Initiates Coverage On Outperform View More Analyst Ratings for PLTK View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Why Is Mobile Games Giant Playtika Soaring On Wednesday? originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
