Needham & Company Starts Glu Mobile (GLUU) at Strong Buy; Rapid Growth From The "Reboot' Transformation as Smart Phones Accelerates

March 23, 2012 7:45 AM EDT
Get Alerts GLUU Hot Sheet
Price: $2.29 --0%

Rating Summary:
    7 Buy, 8 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 24 | Down: 17 | New: 14
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Needham & Company initiates coverage on Glu Mobile (NASDAQ: GLUU) with a Strong Buy. PT $8.00.

Analyst, Sean McGowan, said, "We believe GLUU’s smart phone growth has been hidden in recent years by the decline of its feature phone revenue, but its new model is based on owned-IP, which is far more profitable. As the global installed base of smart phones and tablets grows and GLUU’s low-margin feature phone revenues burn off, we expect significant gains in profitability. Our $8 price target assumes that at this time next year, the stock will sell at a P/E of about 20x non-GAAP EPS for 2014, which we estimate at $0.40."

For an analyst ratings summary and ratings history on Glu Mobile click here. For more ratings news on Glu Mobile click here.

Shares of Glu Mobile closed at $4.00 yesterday.

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