Credit Suisse Slashes King Digital Price Target

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 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."