Wedbush Maintains an 'Outperform' Zynga (ZNGA); There's Still Some Upside

July 26, 2012 1:23 PM EDT Send to a Friend
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Price: $4.56 --0%

Rating Summary:
    3 Buy, 22 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Wedbush maintains an 'Outperform' Zynga (NASDAQ: ZNGA) price target of $7.00 (from $17.00).

Analyst, Michael Pachter, said, "While management previously stated that bookings growth would be weighted towards the second half of the year, implied 2H bookings of $519 – 594 million are actually below 1H bookings of $631 million. Also, 1H adjusted EBITDA of $152 million is greater than the high-end of the 2H implied range, as is 1H EPS of $0.06." (FY12 EPS estimate cut from $0.32 to $0.10 and FY13 from $0.46 to $0.10)

"Notwithstanding the sharply lower guidance, Zynga has some upside, in our view. The company has $1.8 billion in cash and real estate, or $2 per fully diluted share, making its enterprise value close to $1 billion. It is profitable and has tremendous brand equity, suggesting that there is upside to the share price."

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 $5.08 yesterday.




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