The Man Who Can Justify Buying Zynga Stock

In a report published Friday, Wedbush analyst Michael Pachter maintained an Outperform rating and price target of $6 on

. Following the robust Q2 results and continuing turnaround of the company, the analyst believes that Q4 would be "the light at the end of the tunnel." Zynga reported strong Q2 results, with booking and EPS above the guidance, estimates and consensus. However, user metrics decline across the board, although average daily bookings per average daily user (ABPU) rose enough to offset the decline in the user base. "With the launch of two games in Q2 and with three games coming in Q4, we expect player metrics to stabilize by year-end and begin to grow again in 2016," Pachter stated. In addition, the company issued its Q3 guidance above the estimates, and the analyst believes that the company is well positioned to deliver upside once again, while expecting the games launched in Q2 to contribute sequentially higher in Q3. According to the Wedbush report, "Zynga narrowed the number of titles planned to six from a previous range of 6 – 8. We take this to mean that the company plans two titles in the first half of 2016, and expect Zynga to launch another six games next year." The company also announced that it planned to launch three additional Ville games as well as a slots game in 2016, while also mentioning that it intended to launch the much anticipated