UPDATE: Bank of America Upgrades Zynga; Raises PO

According to a research report published this morning, Bank of America has upgraded Zynga ZNGA from Underperform to Neutral, and has increased PO from $9.50 to $10. In the report, Bank of America said, "1Q results were ahead of consensus at revenue of $320mn vs. street at $315mn, with EBITDA at $87mn vs. $80mn and adj. EPS at $0.06 vs. $0.05. Bookings were up 15% y/y and 7% q/q to $329mn, with upside to our estimate driven by strong Mobile growth (PC games up q/q, mobile up much more). Zynga's higher 2012 bookings outlook was also positive, but upside was driven by the OMGPOP acquisition. Overall, 1Q DAU and payer metrics were in-line with our ests., but PC bookings growth was better than implied by AppData DAU estimates." Zynga closed yesterday at $9.42.