MYPS - PlayStudios stock slumps after downgrade at Craig Hallum

PlayStudios Inc. ( NASDAQ: MYPS ) shares plummeted on Monday after a key downgrade from a Craig Hallum analyst Ryan Sigdahl.

Sigdahl told clients that he sees Playstudios ( MYPS ) full-year guidance offered in May as overly optimistic upon review, with the probability of more downside promoting a downgrade from “Buy” to “Hold” and a slashed price target to $5 from $8 prior.

“Our checks indicate softening industry and company game trends which could negatively impact financial performance and puts management’s guidance at risk,” he explained.

While he indicated that he remains largely positive on the loyalty platform, M&A potential, margin expansion, and we think its loyalty platform will drive industry-plus organic growth, and comparatively strong organic growth in its industry, the near term headwinds hurt prospects for the stock. As such, Sigdahl advised moving to the sidelines until there is more clarity on the path ahead.

PlayStudios ( MYPS ) shares slumped 9.35% on Monday following the downgrade.

Read the company’s full year forecast offered in May .

For further details see: