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Mark Pincus Only Adds More Questions For Zynga, Jefferies Says

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In a report published Wednesday, Jefferies analyst Brian Pitz commented on Zynga Inc (NASDAQ: ZNGA) naming its founder and Chairman Mark Pincus to replace Don Mattrick and assuming the CEO role, effective immediately.

According to Pitz, the announcement is a negative as the change in management raises more questions than answers. However, the strategic direction of the company under Pincus is likely to remain largely the same with a "heads-down" focus on mobile and shouldn't impact the 2015 game lineup.

Related Link: Why Zynga Needs Fresh Blood, Not Former CEO Mark Pincus

The analyst also added that the company's Chief Financial Officer David Lee previously expressed confidence in the company's results, noting that "we are confident in the outlook we gave during our fourth quarter 2014 earnings call on February 12, 2015." However, if business is operating ahead of plan, as implied by the statement, investors are right to question the immediacy of the CEO change.

Shares remain Buy rated with an unchanged $4.50 price target.

Latest Ratings for ZNGA

DateFirmActionFromTo
Dec 2020JP MorganUpgradesNeutralOverweight
Dec 2020Wells FargoUpgradesEqual-WeightOverweight
Nov 2020Piper SandlerMaintainsOverweight

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Posted-In: Brian Pitz Don Mattrick Jefferies Mark Pincus Mobile Games video gamesAnalyst Color Analyst Ratings

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