Piper Jaffray Reiterates Neutral Rating, $3.50 PT on Glu Mobile

In a report published Monday, Piper Jaffray & Co. reiterated its Neutral rating and $3.50 price target on Glu Mobile (NASDAQ: GLUU).Piper Jaffray noted, “Through the first two months of the quarter, our analysis of the number of games in the Top 200 grossing for both the iPad and iPhone App Stores in the U.S., which we believe provides an indicator for Glu's revenue as over 60% of smartphone revenues come from iOS devices and over 50% of total revenues come from the U.S., shows 4Q weighted average rankings have increased sequentially. While still somewhat preliminary (with 3 weeks remaining in the quarter), this is a positive sign for 4Q results as the company guided for sequentially lower smartphone revenues. Thus, we are relatively comfortable with our flat q/q $18.3M 4Q non-GAAP smartphone revenue estimate, but still remain somewhat cautious going forward as we have yet to see how successful Glu's efforts to increase monetization rates (especially through the recent Gamespy acquisition and hiring of Matt Ricchetti as President of Studios) have been.”Glu Mobile closed on Friday at $2.44.