Baird Chimes In on Zynga (ZNGA) After Facebook Boost

Robert W. Baird made comments on Zynga (NASDAQ: ZNGA) Thursday following Facebook's S-1 disclosure that showed 12% of the social media giant's revenues are contributed by Zynga.

Analyst Colin Sebastian said this disclosure really isn't a shock as Zynga has already reported its revenues and exposure to Facebook. That being said, Sebastian notes, "Facebook also reported a healthy 20% Q/Q increase in payments/fees, mostly game related, and we believe there is potential upside to our Q4 estimates."

He notes that Zynga pays Facebook a 30% "toll" as well as advertising that Zynga buys on the Facebook platform. Applying some assumptions, the firm believes there is potential upside to their $300 million net bookings estimate for Q4.

Sebastian also highlighted that after a slow start for one of Zynga's newest social games Hidden Chronicles it is now "showing some legs."

The firm maintained their Outperform rating and price target of $12.00.

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 $10.60 yesterday.

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