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Truist analyst Matthew Thornton raised the firm's price target on SciPlay to $17 from $15 and keeps a Hold rating on the shares as part of a broader research note on Digital Entertainment. The analyst is citing "very solid mobile app revenue data" for the company, driven by Jackpot Party, Quick Hit, and Gold Fish.
DA Davidson analyst Franco Granda downgraded Playtika (PLTK) to Neutral from Buy with a price target of $11, down from $15. The analyst is citing the company's recent market share losses in core Casino market to to SciPlay (SCPL), Moon Active, and AppLovin (APP) - even as the latter is deemphasizing growth on its mobile gaming operations. The firm is also negatives on Playtika's proposed Rovio acquisition as its reputation in Finland "does not bode well for Rovio employees' morale".
Truist analyst Matthew Thornton downgraded SciPlay to Hold from Buy with an unchanged price target of $15. Thornton views Q4 consensus as a slightly high hurdle as it implies the company expanding EBITDA margin by well over 800bps q/q to a new record high outside of the 2Q20 peak pandemic, on lower brand advertising and UA spend, and seasonally higher revenue, the analyst tells investors in a research note. The analyst thinks SciPlay is executing well and is positive on recent board and CFO developments, Thornton adds.
The company said, "Our strategic investments, including in the SciPlay Engine and our upcoming direct-to-consumer platform, will enhance our ability to drive growth and long-term margin expansion as we continue to scale ARPDAU and take a competitive leap in the current business environment. Given our strong performance this quarter, we are maintaining our full year 2022 revenue growth and AEBITDA margin targets. We see an unparalleled combination of opportunities to grow and scale our business over the long-term and drive increased shareholder value."
Reports Q3 revenue $170.8M, consensus $167.35M. Average Monthly Paying Users increased to 0.6M compared to 0.5M in the prior year period. Average Revenue Per Daily Active User was up 16% to a record 80c compared to 69c in the prior year period. The company said, "SciPlay achieved record revenue and strong profitability in the third quarter. We outperformed the overall social casino market for the second consecutive quarter. SciPlay's durable growth is the direct result of our long-term strategy, strategic investments and strong execution on our operating plan We've continued to enhance monetization and achieved multiple quarterly records fueled by our evergreen social casino franchises, demonstrating their longevity and ability to drive sustainable growth. With our investments, we are delivering better gaming content and experiences than ever before, deepening players' engagement and boosting player life-time value."
SciPlay "announced the appointment of Jim Bombassei as Executive Vice President, CFO and Secretary, effective December 1, 2022. As CFO, Mr. Bombassei will oversee the Company's financial operations and partner with the leadership team and the business units on strategy and driving growth and value creation."
DA Davidson analyst Franco Granda lowered the firm's price target on SciPlay to $17 from $18 but keeps a Buy rating on the shares. The company's core business remains one of the best performing mobile gaming portfolios out there despite continued pressure from headwinds impacting the mobile gaming industry and the broader economy, though he is reducing his estimates to account for the deteriorating fundamentals of the recently acquired Alictus, the analyst tells investors in a research note.
Truist analyst Matthew Thornton keeps his Buy rating and $15 price target on SciPlay (SCPL) after the company disclosed a letter from Engine Capital calling for Light & Wonder (LNW) to acquire the remaining SciPlay shares if it is core to its multi-platform strategy or seek strategic alternatives otherwise. Thornton states that he has articulated similar points when Light & Wonder first announced its strategy, namely that if SciPlay is "not core", the holding as an "illiquid minority stub" makes no sense, and if "core", it should not be a "separate stub".
