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Credit Suisse Slashes King Digital Price Target

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Following the company's worse-than-expected second quarter results and third quarter booking guidance ($500 - 525 million), Credit Suisse has cut the price target on King Digital Entertainment (NYSE: KING) from $28 to $17.

However, the firm has maintained an Outperform rating on the stock.

Credit Suisse stated, "Given that the miss was across the board and not specific to one game, we suspect the monetization headwinds are more transitory, but we have nevertheless taken what we believe are draconian cuts to our MAU assumptions for new games and project a more rapid decay trajectory for Candy Crush to model continued consolidated bookings decay in the medium-to-longer term."

Latest Ratings for KING

DateFirmActionFromTo
Aug 2015JP MorganDowngradesOverweightNeutral
Aug 2015BarclaysMaintainsEqual-weight
Jul 2015Morgan StanleyInitiates Coverage onOverweight

View More Analyst Ratings for KING
View the Latest Analyst Ratings

Posted-In: Credit SuisseAnalyst Color Price Target Reiteration Analyst Ratings

 

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