UPDATE: JP Morgan Cuts Target on Zynga to $14
JP Morgan lowers its price target from $15 to $14 on Zynga (NASDAQ: ZNGA) on updated thoughts following the incorporation of OMGPOP in the company's models.
JP Morgan comments, "Following a period of publishing restriction on Zynga, we maintain our Neutral rating on the shares, but we're lowering our price target from $15 to $14. We are positive on the acquisition of OMGPOP and believe Draw Something is a title that could have legs over the next few years. We also believe a potential acquisition multiple of 2-3x OMGPOP's 2012 estimated bookings of $60M-$100M is reasonable. However, that a one-off game from a small company could climb the digital gaming charts so quickly and displace other established games suggests the competitive moat may not be quite as wide as we originally thought."
ZNGA closed at $12.13 on Thursday.
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