Northland Capital Markets Remains Bullish on Glu Mobile (GLUU) Ahead of 2H15 Game Launches

Northland Capital Markets maintains an Outperform rating and $9.50 price target on Glu Mobile (NASDAQ: GLUU) ahead of 2H15 game launches. Analyst Darren Aftahi's proprietary analysis estimates ~$59.9M in non-GAAP revenue for 2Q.

Aftahi commented, "Through the end of 2Q, our proprietary analysis estimates ~$59.9M in non-GAAP revenue for 2Q (up slightly from our prior $59.1M proprietary estimate), providing potential upside to guidance of $50M-$52M and our estimate of $51.3M (and consensus of $51.5M). Moreover, Glu game rankings have seen a relative step up in June (with continuation into July) vs. averages in April and May. However, we reiterate the more important point, which is with Glu’s catalogue on a ~$60M+/- Q revenue contribution run rate (1H15), this implies it could account for ~$240M+/- of its current $262-$287M sales guidance. As such, with a solid lineup of 10 games in 2H15, we believe “incremental” levels of revenue to be achieved by its current guidance are conservative. We remain opportunistic buyers of shares ahead of 2H."

For an analyst ratings summary and ratings history on Glu Mobile click here. For more ratings news on Glu Mobile click here.

Shares of Glu Mobile closed at $6.13 yesterday.

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