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Analysts at Pacific Crest assumed coverage on shares of King Digital Entertainment PLC (NASDAQ:KING) in a research report issued to clients and investors on Monday, TheFlyOnTheWall.com reports. The firm set an “outperform” rating and a $21.00 price target on the stock. Pacific Crest’s price target would indicate a potential upside of 17.65% from the stock’s previous close.

The analysts wrote, “We are initiating coverage of KING with an Outperform rating and a price target of $21. Our target is based on 1.9x our 2015 sales estimate and 5x our 2015 EV/EBITDA. KING is the cheapest gaming stock. We believe there is a good chance King will beat consensus estimates in the near term. Longer term, however, King faces the same hit risks as other gaming companies, but with the near-term setup and valuation, we think investors have a cheap call option on a potential future hit.”

Shares of King Digital Entertainment PLC (NASDAQ:KING) traded up 5.12% during mid-day trading on Monday, hitting $17.85. 3,481,742 shares of the company’s stock traded hands. King Digital Entertainment PLC has a 52-week low of $15.26 and a 52-week high of $21.39. The stock’s 50-day moving average is $16.7 and its 200-day moving average is $17.39. The company has a market cap of $5.671 billion and a price-to-earnings ratio of 8.47. King Digital Entertainment PLC also was the recipient of unusually large options trading activity on Friday. Stock traders acquired 11,964 call options on the stock. This represents an increase of approximately 1,291% compared to the typical daily volume of 860 call options.

King Digital Entertainment PLC (NASDAQ:KING) last announced its earnings results on Wednesday, May 7th. The company reported $0.41 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.57 by $0.16. The company had revenue of $606.70 million for the quarter, compared to the consensus estimate of $205.90 million. The company’s revenue for the quarter was up 194.7% on a year-over-year basis.

A number of other firms have also recently commented on KING. Analysts at Deutsche Bank initiated coverage on shares of King Digital Entertainment PLC in a research note on Monday, May 5th. They set a “buy” rating and a $27.00 price target on the stock. Separately, analysts at Piper Jaffray initiated coverage on shares of King Digital Entertainment PLC in a research note on Monday, May 5th. They set a “neutral” rating and a $19.00 price target on the stock. Finally, analysts at RBC Capital initiated coverage on shares of King Digital Entertainment PLC in a research note on Monday, May 5th. They set an “outperform” rating and a $24.00 price target on the stock. Two equities research analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. The stock presently has an average rating of “Buy” and a consensus price target of $24.67.

King Digital Entertainment plc is an interactive entertainment company. The Company’s games include Candy Crush Saga, Pet Rescue Saga, Farm Heroes Saga, Papa Pear Saga and Bubble Witch Saga.

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