Wedbush Defends Zynga (ZNGA): Shares Should Continue Rebound; Negative Impact From Facebook & comScore
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Price: $3.40 --0%
Rating Summary:
3 Buy, 20 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 8
Rating Summary:
3 Buy, 20 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 8
Trade ZNGA Now!
Wedbush maintains an 'Outperform' on Zynga (NASDAQ: ZNGA) price target of $17.00.
Analyst, Michael Pachter, said, "We believe shares may have hit a bottom on concerns over recent declines in monthly active users (MAUs), and expect launches of new games to drive sustained user growth. We expect strong 2H:12 financial performance, driven by increased spending on key older franchises and maturity of 2011 releases. Zynga shares should benefit as investors gain better understanding about the key drivers of the company’s financial performance (which reflect a lag between game launches and spending), as opposed to a focus on daily usage statistics alone."
"The decline in the value of Facebook (NYSE: FB) shares led to a decline in Zynga shares. We remain focused on Zynga’s Facebook penetration (market share), its usage statistics, and most importantly, its monetization trends."
For an analyst ratings summary and ratings history on Zynga click here. For more ratings news on Zynga click here.
Shares of Zynga closed at $5.56 yesterday, with a 52 week range of $4.78-$15.91.
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Analyst, Michael Pachter, said, "We believe shares may have hit a bottom on concerns over recent declines in monthly active users (MAUs), and expect launches of new games to drive sustained user growth. We expect strong 2H:12 financial performance, driven by increased spending on key older franchises and maturity of 2011 releases. Zynga shares should benefit as investors gain better understanding about the key drivers of the company’s financial performance (which reflect a lag between game launches and spending), as opposed to a focus on daily usage statistics alone."
"The decline in the value of Facebook (NYSE: FB) shares led to a decline in Zynga shares. We remain focused on Zynga’s Facebook penetration (market share), its usage statistics, and most importantly, its monetization trends."
For an analyst ratings summary and ratings history on Zynga click here. For more ratings news on Zynga click here.
Shares of Zynga closed at $5.56 yesterday, with a 52 week range of $4.78-$15.91.
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