DoubleDown Interactive (DDI) stock surged in pre-market trading on Monday, following the company's better-than-expected earnings report for the third quarter and an analyst price target upgrade.
In its latest earnings release, DoubleDown Interactive reported adjusted earnings per share (EPS) of $0.51, narrowly missing analysts' consensus estimate of $0.56. However, the company's revenue grew by 13.7% year-over-year to $82.98 million, although it fell short of the expected $85.43 million.
Despite the mixed earnings results, Wedbush analyst Michael Pachter raised his price target on DoubleDown Interactive to $21 from $16.25, maintaining an "Outperform" rating on the stock. This analyst upgrade, coupled with the overall positive sentiment around the company's performance, could be driving the pre-market rally.
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