Skillz falls as brokerage downgrades on growth worries

Firy

12/10/2022 17:44

** Mobile game maker Skillz Inc's  SKLZ.N  shares down ~1%
at 93 cents 
    ** BTIG downgrades to "sell" from "neutral", saying co will
find it "very difficult" to pivot toward sustainable, profitable
growth
    ** SKLZ's operational model appears more costly than that of
competitors - BTIG
    ** Brokerage notes that the firm's efforts at achieving
growth through product initiatives and mergers have failed or
been abandoned 
    ** Co's first-mover advantage has been impacted by smaller
firms cloning games successfully - BTIG
    ** Brokerage says decelerating trends in downloads and
gaming traffic will further hit revenue and earnings 
    ** Adds SKLZ's key partners are not operating profitably and
some are even considering shutting down
    ** Citigroup cuts PT to 95 cents from $1.5 
    ** Two of eight brokerages rate the stock "buy" or higher,
five "hold" and one "strong sell"; their median PT is $1.63 -
Refinitiv
    ** Stock down 87% compared with a ~21% rise in the NYSE
Composite Index  .NYA 
 (Reporting by Johann M Cherian in Bengaluru)
 ((johann.mcherian@thomsonreuters.com;))