UPDATE: Zynga Shares Rallying on UBS Upgrade
Zynga (NASDAQ: ZNGA) shares are moving to the upside Tuesday morning after UBS analyst Eric Sheridan issued an upgrade from Neutral to Buy, and bumped its price target from $4 to $6 per share.
The report directly contradicts Bank of America's downgrade Monday, states that Zynga's recent guidance seems to be conservative for the year, with the acquisition of NaturalMotion expected to add materially to the company's growth. Sheridan also stated that he believes the company's EBITA margins and free cash flow generation will materially improve, returning to a level above 20 percent.
The report moved shares up 7.57 percent in the pre-market to $4.83 as traders appeared to place a greater vote of confidence in UBS's view than Bank of America's from Monday
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