UPDATE: Wedbush Reiterates On King Digital Entertainment As Bookings Begin To Stabilize

In a report published Friday, Wedbush analyst Michael Pachter reiterated an Outperform rating on King Digital Entertainment PLC KING, but lowered the price target from $21.00 to $22.00. In the report, Wedbush noted, “King saw bookings decline by less than its guidance contemplated, and its Q4 guidance suggests stabilizing revenues and bookings. Q3 bookings were $19 million above the high end of guidance, and guidance calls for flat sequential Q4 bookings. In the meantime, profitability, free cash flow, and shareholder returns continue. King beat expectations for all profitability metrics, and announced a $150 million share repurchase authorization following the $150 million dividend paid on October 22. The company appears committed to managing its bottom line to maximize shareholder returns.” King Digital Entertainment closed on Thursday at $13.19.