UPDATE: Bank of America Downgrades Zynga to Underperform on Bookings Miss

Bank of America lowered its rating on Zynga

from Neutral to Underperform and reduced its price objective from $3.60 to $2.70. Bank of America said, "While the stock is likely near bottom given $1.90 in cash per share and a more stable Poker franchise, we are lowering our rating to Underperform as we have little confidence in estimates and expect losses in 1H'13 to pressure the stock relative to our coverage cluster which has momentum. Also, we think it is unlikely cash will be returned to shareholders in the medium term. DAUs for Zynga's top monetizing Ville games will likely continue to trend down, and we think it will take several quarters before mobile growth can offset. Zynga closed at $2.82 on Thursday.