Analyst 'Optimistically Cautious' on Zynga (ZNGA)

July 26, 2013 11:14 AM EDT
Get Alerts ZNGA Hot Sheet
Price: $2.64 +1.15%

Rating Summary:
    8 Buy, 19 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 22 | Down: 32 | New: 34
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Canaccord Genuity maintained a Hold rating on Zynga (NASDAQ: ZNGA) and lowered its price target to $3.50 (from $4.00). Yesterday Zynga reported disappointing Q2 results and said it would not pursue real money gaming in the U.S.

Commenting, analyst Michael Graham said, "New CEO Don Mattrick, two weeks into the job, acknowledges challenges ahead and suggests 2-4 quarters of re-setting. As a matter of focus, Zynga has decided not to pursue a US real-money gambling license. With fundamentals still heading the wrong way but with a good cash cushion, we remain optimistically cautious."

"Zynga hit its guidance for the third straight quarter; new CEO Don Mattrick was frank in acknowledging challenges and seems ready to roll up his sleeves; the recent cost-cutting should help the company prevent burning any cash this year, which should strengthen the floor underneath ZNGA stock," said Graham.

For an analyst ratings summary and ratings history on Zynga (NASDAQ: ZNGA) click here. For more ratings news on Zynga click here.

Shares of Zynga closed at $3.50 yesterday.

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