Loading...
Loading...
Sterne Agee initiated coverage on King Digital Entertainment
KING with a Neutral rating following yesterday's 15 percent drop on the first day of trading. Shares are down another 2.6 percent in Thursday's trading.
Analyst Arvind Bhatia sees two critical factors near-term for the company:
- The decay rate of Candy Crush.
- Growth in Farm Heroes Saga
The analyst noted the
Candy Crush Saga represents 78 percent of fourth quarter bookings, and is “already tracking 20% below peak-booking levels reached in July 2013.”
King Digital has 180 games, but revenue is “concentrated among 3 games, with represent 95% of bookings in 4Q'13,” said Bhatia.
Bhatia is projecting “y/y bookings growth of 32% and 4% in 2014/2015, respectively and adjusted EBITDA growth of 24% and 2% in 2014/2015 respectively.”
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in