UPDATE: Janney Upgrades Zynga Following Results

In a report published Monday, Janney Capital Markets analyst Tony Wible upgraded

from Sell to Neutral with a $4.25 fair value estimate following the company's fourth quarter earnings. Zynga reported fourth quarter bookings at $147 million ahead of the Street's $141 million. The company pre-announced inline adjusted EPS of ($0.03) on a lower user base, weaker revenue, and modestly better bookings. Zynga announced full-year 2014 estimated guidance for organic bookings at $690-730 million and organic adjusted EBITDA guidance of $50-75 million. Wible commented, “Our confidence is growing in the new management team's ability to transform the business in the face of next gen console risk. The steps taken, including the acquisition and large-scale expense/capex reductions, were necessary and part of a well though-out plan that came much sooner than we had anticipated. While execution risk remains, the plan that management laid out suggests this team will continue to make bold and tough decisions, as required.” The analyst added that Zynga's mobile business is gaining momentum with 38% of MAU but mobile still struggles to offset the legacy desktop business. Janney Capital Markets remarked that the NaturalMotion deal will aid in the company's transition to mobile and new game categories. The company reported that they will launch Farmville on mobile devices soon. Shares of Zynga closed at $3.56 on Thursday and are currently trading up 16.71% at $4.155.