King Digital Entertainment Shares Drop Amid Bank Of America Downgrade
In a note released Wednesday morning, Bank of America analyst Justin Post downgraded King Digital Entertainment (NYSE: KING) from Buy to Neutral and cut his price objective from $23 to $22.
Post's downgrade comes amid a recent decline in the rankings of both Farm Heroes and Pet Rescue and the suggestion by management that the company may suffer from summer seasonality.
The lower price target reflects a reduction in his 2014 - 2016 EPS estimates from $2.35, $2.54 and $2.77 to $2.25, $2.15 and $2.22, respectively. In addition to this, Post has also lowered his 2014 bookings/EBITDA from $2.61 billion/$987 million to $2.51 billion/$946 million based on lower expectations for Farm Heroes bookings (from $754 to $561).
Following the downgrade, shares of King Digital have dropped more than seven percent.
Latest Ratings for KING
|Nov 2015||Morgan Stanley||Downgrades||Overweight||Equal-Weight|
|Nov 2015||Stifel Nicolaus||Downgrades||Buy||Hold|
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