Playtika Holding's (PLTK) timeline and trajectory for a core rebound are "somewhat nebulous," Wedbush said in a Friday note, adding that the company's recent acquisitions and upcoming titles should drive earnings growth for the next several years.

Noting Playtika's lowered revenue and unchanged earnings before interest, tax, depreciation and amortization guidance for 2025, Wedbush said this "suggests that its core games will continue to degrade in H2" as the company expands its acquired games and pushes them to the higher-margin direct-to-consume channel.

On Thursday, Playtika reported its Q2 earnings that missed analysts expectations. The company also lowered its 2025 revenue guidance to $2.70 billion and $2.75 billion from previous outlook of $2.80 billion and $2.85 billion. Analysts polled by FactSet expect $2.83 billion.

Wedbush maintained its outperform rating on the company but lowered its price target to $7 from $11.50.

Price: 3.93, Change: -0.02, Percent Change: -0.51