UPDATE: Wedbush Reiterates Outperform Rating, Raises PT on Zynga on Clearly Articulated Strategy

In a report published Monday, Wedbush analyst Michael Pachter reiterated an Outperform rating on

, and raised the price target from $6.00 to $7.00. In the report, Wedbush noted, “Zynga overcame a rocky 2013, and CEO Don Mattrick streamlined the company's cost structure and stabilized its core business, positioning Zynga to grow revenues and profits in 2014. We think that there is potential for shares to appreciate above our target if Zynga's management executes on Mr. Mattrick's plan, as we think that contribution margin on bookings growth can exceed 30%. The flexibility inherent in Zynga's business model makes a return to profitability in 2014 believable, and now that its losses are behind the company, we think investors will once again pay attention.” Zynga closed on Friday at $5.46.