Market Overview

KeyBanc Bullish On Glu Mobile, Raises Estimates For Mobile Game Maker

Share:
KeyBanc Bullish On Glu Mobile, Raises Estimates For Mobile Game Maker

Glu Mobile Inc. (NASDAQ: GLUU) updated its recent guidance to reflect positive trends in engagement and monetization that have continued since early May.

This reaffirms confidence in the company’s position in the growing mobile games industry, according to KeyBanc Capital Markets.

The Glu Mobile Analyst

Tyler Parker maintained an Overweight rating on Glu Mobile with a $10 price target. 

The Glu Mobile Thesis

Glu Mobile has witnessed broad-based strength across its live services portfolio, with record quarters expected from Design Home and Covet Fashion as well as positive trends in other games, Parker said in a Thursday note. (See his track record here.)

Glu Mobile raised the bookings guidance for the current quarter from between $150 million and $155 million to between $162.5 million and $167.5 million.

For the full year, the guidance was raised from between $490 million and $500 million to between $502.5 million to $512.5 million.

The full-year guidance has been raised only to reflect the higher projections for the second quarter, the analyst said.
While the company may witness a return to more normalized levels of engagement and monetization as stay-at-home restrictions ease, there seems to be upside to the implied expectations for the second half of the year, he said. 

Parker raised KeyBanc's adjusted EBITDA estimates for fiscal 2020 and 2021 from $53.9 million to $63.2 million and from $79.2 million to $84.2 million, respectively.

GLUU Price Action

Shares of Glu Mobile were trading 11.46% higher to $9.68 at the time of publication Friday. 

Photo by Glu Mobile via Wikimedia. 

Latest Ratings for GLUU

DateFirmActionFromTo
Jun 2020UBSInitiates Coverage OnBuy
May 2020Morgan StanleyDowngradesOverweightEqual-Weight
May 2020BenchmarkMaintainsBuy

View More Analyst Ratings for GLUU
View the Latest Analyst Ratings

 

Related Articles (GLUU)

View Comments and Join the Discussion!

Posted-In: gaming KeyBanc Capital MarketsAnalyst Color News Guidance Price Target Reiteration Analyst Ratings Best of Benzinga

Need corporate guidance data?
Click here to see licensing options.

Latest Ratings

StockFirmActionPT
BKHMizuhoMaintains70.0
JOBAlliance Global PartnersUpgrades2.5
RARECanaccord GenuityMaintains91.0
TTDOppenheimerMaintains450.0
PYPLWedbushMaintains200.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
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.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
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