Needham & Company Upgrades Zynga (ZNGA) to Hold; Sharp Sell-Off Leaves Less Downside Risk
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Price: $8.18 --0%
Rating Summary:
15 Buy, 18 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
15 Buy, 18 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Needham & Company upgraded Zynga (NASDAQ: ZNGA) from Underperform to Hold.
Analyst, Sean McGowan, said, "We initiated coverage of ZNGA on March 23rd with an Underperform rating, believing the stock (then $13.76) would be more fairly valued below $11. ZNGA, now trading just above $10, has fallen 27% since then. Since our launch, we have seen little or no change in ZNGA’s fundamental prospects, which we believe remain strong. Perhaps the biggest change has been the secondary stock offering, which has added about 50 million shares to the float, and has deferred the expiration of the IPO lock-up on hundreds of millions of other shares. One of the factors behind our Underperform rating was a concern that a surge of insider selling could pressure the shares. With the stock down sharply, we believe this risk is now reflected in the shares."
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 $10.04 yesterday.
Analyst, Sean McGowan, said, "We initiated coverage of ZNGA on March 23rd with an Underperform rating, believing the stock (then $13.76) would be more fairly valued below $11. ZNGA, now trading just above $10, has fallen 27% since then. Since our launch, we have seen little or no change in ZNGA’s fundamental prospects, which we believe remain strong. Perhaps the biggest change has been the secondary stock offering, which has added about 50 million shares to the float, and has deferred the expiration of the IPO lock-up on hundreds of millions of other shares. One of the factors behind our Underperform rating was a concern that a surge of insider selling could pressure the shares. With the stock down sharply, we believe this risk is now reflected in the shares."
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 $10.04 yesterday.
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