UPDATE: Pacific Crest Securities Initiates Coverage on King Digital Entertainment PLC with Outperform Rating, $21 PT on Near-Term Setup, Valuation

In a report published Monday, Pacific Crest Securities analyst Evan Wilson initiated coverage on

with an Outperform rating and $21.00 price target. In the report, Pacific Crest Securities noted, “We are initiating coverage of KING with an Outperform rating and a price target of $21. Our target is based on 1.9x our 2015 sales estimate and 5x our 2015 EV/EBITDA. KING is the cheapest gaming stock. We believe there is a good chance King will beat consensus estimates in the near term. Longer term, however, King faces the same hit risks as other gaming companies, but with the near-term setup and valuation, we think investors have a cheap call option on a potential future hit.” King Digital Entertainment PLC closed on Friday at $17.56.