Playtech shares (LON: PTEC) have started 2025 on solid ground gaining 3.65%, and continuing the bullish trend that has held through much of the last year. The share price added ~60% through 2024, although much of that gain came through the first three quarters of the year.
A recent 4% pullback through the first week of the year has been bought, and the bulls have again pushed the stock above 730p as a quick glance at the chart will show. Technically, PTEC has been trading in a range largely through the past 4 months, with a period of consolidation and accumulation not atypical after a bullish run. Whether the stock will break up or down from here is yet to be seen, however operational performance may help determine the narrative.
In 2024, Playtech made strategic moves that bolstered its market presence and financial standing. One pivotal action was the divestment of its Italian business, Snaitech, to Flutter Entertainment for €2.3 billion (£1.9 billion) in September. This move not only strengthened Playtech's balance sheet but also redirected focus to key growth areas, aligning with its strategic objectives.
Additionally, Playtech's resolution of a major dispute with Caliplay in Mexico improved its foothold in the Latin American market, a region ripe with growth opportunities. These business decisions have been instrumental in enhancing investor confidence and driving share price appreciation.
On the analyst front, Deutsche Bank had upgraded the stock a couple of times in Q4; first from 780p to 873p, and subsequently to 908p. The consensus target of 916.40 would represent significant potential upside from the current price action if execution matches expectations. These sorts of figures however have not been seen in the stock since the highs in 2017.
As will all stocks, careful consideration should be given to both the potential directions, and with the next earnings not due for another couple of months, further fundamentals may hold sway one way or another.
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