Baird Downgrades Zynga (ZNGA) to Neutral On Valuation after Q4 Results

Baird downgraded Zynga (NASDAQ: ZNGA) from Outperform to Neutral with a price target of $13 (up from $12) on valuation following solid Q4 results.

Analyst Sebastian Colin comments, "Following a solid first quarter out of the gate, we believe it is prudent to move to the sidelines with shares up nicely since our initiation on 1/24. While we maintain a positive bias, a second-half weighted release schedule, some potential issues with unique payer trends on Facebook, and overhangs such as the lockup period could limit appreciation in the near term."

The firm cut FY12 EPS from $0.37 to $0.26.

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 $14.35 yesterday.

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