Credit Suisse On Zynga: New Game Launches Are The Silver Lining
Zynga’s (NASDAQ: ZNGA) price target was cut from $4 to $3.50 at Credit Suisse following a 20 percent revenue miss.
Along with the worse-than-expected metric, Zynga said it would release five games in the second half of 2014. According to Credit Suisse, part of the miss can be attributed to the delay in product launch.
Regarding the new game launch, “ 2H14 will bring the release of five new games for Zynga and as we have noted before, the primary catalyst we are waiting for is the creation of lasting new mobile franchises as it positions itself for growth.”
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Analyst Stephen Ju further writes, “We maintain our Underperform rating for now but with what appears to a cadence of ~ten games set for release in any given year, we have to note that the possibility of upward revisions to estimates is increasing given the more ‘at bats’ the company will have.”
Shares of Zynga were last trading 7.5 percent lower to $2.70.
Latest Ratings for ZNGA
|Dec 2016||Mizuho||Initiates Coverage On||Buy|
|Aug 2016||Cowen & Co.||Upgrades||Market Perform||Outperform|
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