Sterne Agee Reiterates Neutral Rating on Zynga

In a report published Friday, Sterne Agee Group reiterated its Neutral rating on Zynga ZNGA. Sterne Agee noted, “While we were not surprised that outlook was lowered, the magnitude of the guidance reduction did surprise us. In our opinion, preserving cash ($1.85 net cash per share) and quickly right-sizing the business will be critical in the near-term. Unfortunately, we see significant layoffs in the coming months.” Zynga closed on Thursday at $2.81.