Evercore Partners Upgrades Zynga to “Equal Weight” (ZNGA)
Zynga (NASDAQ:ZNGA) was upgraded by research analysts at Evercore Partners from an “underweight” rating to an “equal weight” rating in a report released on Thursday, TheFlyOnTheWall.com reports. The firm currently has a $3.00 target price on the stock.
The analysts wrote, “despite continued user declines, the floor protection provided by the company’s high cash balance combined with the potential for a break-out hit similar to Candy Crush leaves us seeing limited downside at current levels.” Even though Candy Crush has taken out Zynga (3 jellybeans at a time), this exhibits the potential success of new popular games by Zynga. The analyst has concerns on Zynga’s reliance on Facebook and desktop-based games. In addition, Zynga must have the ability to launch new game hits and maintain users. Core games, such as “CoasterVille , Bubble Safari, ChefVille and CastleVille are all down double-digits in August vs. July.”
Zynga (NASDAQ:ZNGA) traded up 1.33% on Thursday, hitting $3.04. 13,739,346 shares of the company’s stock traded hands. Zynga has a 52 week low of $2.09 and a 52 week high of $4.03. The stock has a 50-day moving average of $2. and a 200-day moving average of $3.19. The company’s market cap is $2.445 billion. Zynga also was the target of unusually large options trading on Monday. Investors acquired 16,382 call options on the stock. This represents an increase of 123% compared to the average daily volume of 7,336 call options.
Zynga (NASDAQ:ZNGA) last released its earnings data on Thursday, July 25th. The company reported ($0.01) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.04) by $0.03. The company had revenue of $230.70 million for the quarter, compared to the consensus estimate of $224.30 million. During the same quarter in the previous year, the company posted $0.01 earnings per share. The company’s revenue for the quarter was down 30.6% on a year-over-year basis. On average, analysts predict that Zynga will post $-0.08 earnings per share for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at Barclays Capital initiated coverage on shares of Zynga (NASDAQ:ZNGA) in a research note to investors on Friday, September 6th. They set an “equal weight” rating on the stock. Separately, analysts at Benchmark Co. initiated coverage on shares of Zynga (NASDAQ:ZNGA) in a research note to investors on Thursday, August 22nd. They set a “hold” rating and a $2.98 price target on the stock. Finally, analysts at Janney Montgomery Scott initiated coverage on shares of Zynga (NASDAQ:ZNGA) in a research note to investors on Monday, August 19th. They set a “sell” rating and a $2.50 price target on the stock.
Six investment analysts have rated the stock with a sell rating, twelve have issued a hold rating and one has assigned a buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus price target of $3.36.
Zynga Inc (NASDAQ:ZNGA), is a provider of social game services with 240 million average monthly active users over 175 countries.
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