UPDATE: Evercore Upgrades Zynga, Awaiting New Popular Games

In a report published Thursday, Evercore Partners analyst Ken Sena upgraded Zynga ZNGA from Underweight to Equal-weight with an unchanged $3 price target. In the report, Sena noted that, “despite continued user declines, the floor protection provided by the company's high cash balance combined with the potential for a break-out hit similar to Candy Crush leaves us seeing limited downside at current levels.” Even though Candy Crush has taken out Zynga (3 jellybeans at a time), this exhibits the potential success of new popular games by Zynga. The analyst has concerns on Zynga's reliance on Facebook and desktop-based games. In addition, Zynga must have the ability to launch new game hits and maintain users. Core games, such as “CoasterVille , Bubble Safari, ChefVille and CastleVille are all down double-digits in August vs. July.” Zynga closed at $3.00 on Wednesday.