Bank of America double-upgraded PLTK to "buy" from "underperform"
Playtika (NASDAQ:PLTK) stock is heading for its best session on record today, after Bank of America issued a rare double-upgrade to “buy” from “underperform.” The brokerage firm called the mobile gaming company a standout in a maturing -- but still expanding -- sector. That sudden sentiment flip could mark the beginning of a broader shift in analyst tone, especially if today’s price action holds.
At last glance, PLTK was up 21.7% to trade at $5.36. A sharp pivot from its March 21, all-time low of $3.97, though the stock still sports a 24.2% year-to-date deficit. The bounce has the equity reclaiming most short-term moving averages, but longer-term trendlines continue to loom overhead, and any rally may hit turbulence if the broader skepticism doesn’t fully unwind.
A staggering 73% of analysts still rate the stock a "hold" or worse. In other terms, should this bearish sentiment begin to unwind, it could catapult PLTK higher. Short interest is up 31.6% over the last two reporting periods, with nearly 9.9% of the float sold short. That’s ample potential for a squeeze, should today’s rally spooks bears.
Options traders have also been leaning bearish, with PLTK’s 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranking in the 92nd percentile of annual readings. However, given today's pop, this put-heavy activity appears to be shifting. The typically sleepy options pits have already seen 4,273 calls cross the tape -- 67 times the average intraday volume -- with the May 5 call seeing the most attention.