UPDATE: Wedbush Initiates Coverage On King Digital Entertainment PLC On Expected Long-Term Growth

In a report published Tuesday, Wedbush analyst Michael Pachter initiated coverage on

with an Outperform rating and $25.00 price target. In the report, Wedbush noted, “We are initiating coverage of King Digital Entertainment with an OUTPERFORM rating and a 12-month price target of $25. Our target is based upon assigning a roughly 9x multiple to our $2.87 estimate for King's EPS in 2015. This reflects a discount to the market multiple to account for the risks associated with a hit-driven business, and to reflect King's large concentration of revenues from its biggest game, Candy Crush Saga.” King Digital Entertainment PLC closed on Monday at $19.05.