Zynga (ZNGA) Stable Ahead of Unleashed 2012 Event
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Price: $3.40 -1.45%
Rating Summary:
3 Buy, 20 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
3 Buy, 20 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Trade ZNGA Now!
After weeks of brutal downside, shares of social game maker Zynga (NASDAQ: ZNGA) are stable today ahead of the Zynga Unleashed 2012 event on June 26th at 10:30AM PT. The event will include a keynote address, game demos and a studio tour.
Analysts at Baird expects the event to "add clarity to potential growth drivers." They see several new game announcements as well as plans for growth on Facebook as well as on other platforms.
The firm said the company's pipeline includes sequels to existing key franchises (e.g., Farmville), as well as a broader assortment of new titles, including mid-core games as well as games for smart devices.
On Facebook, they note that data from Facebook App Center shows that Zynga games account for eight of the top 10 apps on Facebook in terms of monetization. "Importantly, Farmville continues to monetize well, followed in the rankings by Zynga Poker, CastleVille and CityVille," the firm notes. Monetization is also high for Pioneer Trail and Cafe World, they said.
The firm also sees a update on the Zynga.com platform, which, while still early, could "become an important distribution and retention tool."
Advertising also remains another growth opportunity, they analyst said.
"While recent trends are somewhat mixed for social games, we believe sentiment in the stock is overly negative, and that Zynga remains uniquely positioned for long-term growth."
The firm maintained their Outperform rating and price target of $13 on the stock.
For an analyst ratings summary and ratings history on Zynga click here. For more ratings news on Zynga click here.
Shares of Zynga are trading at $6.01, up 0.25%.
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Analysts at Baird expects the event to "add clarity to potential growth drivers." They see several new game announcements as well as plans for growth on Facebook as well as on other platforms.
The firm said the company's pipeline includes sequels to existing key franchises (e.g., Farmville), as well as a broader assortment of new titles, including mid-core games as well as games for smart devices.
On Facebook, they note that data from Facebook App Center shows that Zynga games account for eight of the top 10 apps on Facebook in terms of monetization. "Importantly, Farmville continues to monetize well, followed in the rankings by Zynga Poker, CastleVille and CityVille," the firm notes. Monetization is also high for Pioneer Trail and Cafe World, they said.
The firm also sees a update on the Zynga.com platform, which, while still early, could "become an important distribution and retention tool."
Advertising also remains another growth opportunity, they analyst said.
"While recent trends are somewhat mixed for social games, we believe sentiment in the stock is overly negative, and that Zynga remains uniquely positioned for long-term growth."
The firm maintained their Outperform rating and price target of $13 on the stock.
For an analyst ratings summary and ratings history on Zynga click here. For more ratings news on Zynga click here.
Shares of Zynga are trading at $6.01, up 0.25%.
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