Wedbush Positive on Zynga (ZNGA) Management Changes

November 14, 2012 10:04 AM EST
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Price: $2.64 --0%

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    8 Buy, 19 Hold, 3 Sell

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Wedbush maintained an Outperform on Zynga (NASDAQ: ZNGA) despite ongoing shuffle in top management at the company.

"While we were exceedingly critical of the departure of former COO John Schappert in July, our views are more positive on the latest round of changes," said analyst Michael Pachter. "With the exception of the departure of CFO David Wehner (who we believe was a capable executive, notwithstanding several guidance missteps), we think that the majority of the new appointments strengthen the company's management team."

Zynga announced that Mark Vranesh, Chief Accounting Officer, would take Mr. Wehner's position as CFO, and David Ko would was promoted to COO, along with several other changes.

"We believe that Mr. Vranesh is a capable CFO, and believe that the promotions of Messrs. Ko, Cottle and Chiang strengthen a management team that, quite frankly, was in need of reinforcement. Zynga has had serious credibility issues with investors, and although we respected Mr. Wehner, he had a tough uphill battle to restore investor confidence. We are hopeful that Mr. Vranesh will communicate clearly and frequently, and we are confident in the other three executives' abilities," added Pacter.

Wedbush has price target of $4.00 on Zynga.

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 $2.11 yesterday.

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