Market Overview

Wedbush: Zynga's Upside Potential Makes It A Top Play

Share:
Wedbush: Zynga's Upside Potential Makes It A Top Play

Online video game developer Zynga Inc (NASDAQ: ZNGA) has the potential to show notable upside versus the Street's estimates through 2021, according to Wedbush.

The Analyst

Michael Pachter maintained an Outperform rating on Zynga  with an unchanged $9 price target. Pachter also added Zynga's stock to the research firm's "Best Ideas List."

The Thesis

Zynga's two key title games "Empires & Puzzles" and "Merge Dragons!" — along with three new releases later this year — should help the company beat expectations over the coming years, Pachter said in a Tuesday note. (See his track record here.) 

"We expect the shares to trade closer to our price target over the remainder of the year," the analyst said. 

Pachter's inclusion of Zynga as a top pick follows a bullish research note at the beginning of August. The analyst lifted his price target on Zynga's stock to $9 at that time in reaction to the company's 14th consecutive quarter of sequential adjusted EBITDA growth in the second quarter.

Zynga's third-quarter guidance, which was mostly in-line with expectations, could prove to be conservative ahead of new game launches, according to Wedbush. 

Price Action

Zynga shares were up 2.68% at $5.75 at the time of publication Tuesday. 

Related Links:

Zynga Is Well Positioned In The Favorable Video Game Market, Stifel Says

Analysts Rave About Zynga's Q1; 'Game of Thrones' Game Launch Likely Coming In Q2

Latest Ratings for ZNGA

DateFirmActionFromTo
Nov 2019MaintainsBuy
Sep 2019AssumesNeutral
Aug 2019MaintainsOutperform

View More Analyst Ratings for ZNGA
View the Latest Analyst Ratings

Posted-In: Michael Pachter Mobile Games video games WedbushAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga

 

Related Articles (ZNGA)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
WEEDCantor FitzgeraldMaintains18.9
TGTXCantor FitzgeraldMaintains19.0
SPLKCleveland ResearchDowngrades
IQVWolfe ResearchUpgrades
PRAHWolfe ResearchUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Mid-Day Market Update: LAIX Drops After Q2 Results; Digital Ally Shares Surge

A Look At Benzinga Pro's Most-Searched Tickers For August 27, 2019