UPDATE: Stifel Nicolaus Initiates Glu Mobile at Buy on Mobile Gaming Outlook

Stifel Nicolaus initiated coverage on Glu Mobile

with a Buy rating and a $5 price target. Stifel Nicolaus noted, "The stock has shed -40% since July (vs. +5% for S&P 500) including a nearly -20% correction in the last week based on 1) relative underperformance across the 3Q release slate; and 2) perhaps some contagion fears amid a slow down within the social network gaming category. However, as a mobile gaming pure-play, we see GLUU as a beneficiary of the robust industry growth forecasted over the next several years, and think the company is positioned to further monetize its titles utilizing a “freemium” model in a market that seems to increasingly favor free-to-play." Glu Mobile closed at $ on Monday.