Numerous Analysts Defend Zynga (ZNGA) Following Recent Decline in Stock

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With shares of Zynga (Nasdaq: ZNGA) down more than 18 percent over the last two trading sessions (and down nearly 60 percent over the last two months) on fears of slowing growth, a fleet of analysts are out in defense of the stock Wednesday.

• JPMorgan - The firm reiterated an Overweight rating but took the stock's price target down from $14 to $11. Investors should be focusing on overall user growth and improving traction in the mobile category instead of a recent increase in the supply of shares as the first of several lock-up periods have expired. JPMorgan said differences between AppData metrics and actual usage levels will continue to widen as the former only tracks users which log on through Facebook (as opposed to through mobile, Google+, Tencent or Zynga.com). The firm believes bookings could reaccelerate through this year.
  
  
• Lazard - Called recent downside "overdone." The firm believes investors may be missing Zynga's opportunity in the mobile market: "Our conversations with a few leading mobile game companies and mobile game platform companies suggest that monetization of games on mobile could be on par with, if not better than, that on PC web — suggesting room for growth for ZNGA." Lazard insists Zynga's story is "more about monetization growth."
  
  Maintains Buy and $16 price target on shares of Zynga.
  
  
• BTIG - Also reiterated a Buy, with a $13 price target. Feels Zynga shares have been "trading as if it is going out of business." Right away the firm pointed to over $2 per share in net and free cash flow which is positive. Sees daily active users for Facebook games as "far more stable than investors realize..." The firm said recent checks suggest daily active users during June are up 2 percent quarter-over-quarter from May.
  
  
• Evercore - The firm's Ken Sena upgraded the stock from Underweight to Equalweight earlier, arguing there could be some catalysts on the horizon with the company's Unleashed event coming up on June 26th.

Zynga shares are up more than 2 percent to $5.09 Wednesday afternoon.

To track all the market-moving analyst action on shares of Zynga, visit our Analyst Ratings page.

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