Zynga (ZNGA) Added to Best Ideas List at Wedbush Ahead of Q1 Print

Wedbush analyst Michael Pachter reiterated an Outperform rating and $7 price target on Zynga (NASDAQ: ZNGA) and added the stock to its 'Best Ideas List' saying they expect Zynga to meet or exceed Q1 guidance and reiterate full-year guidance when it reports results on Wednesday, April 23.

Pachter said, "Our Q1 estimates are for bookings of $150 million and EPS of $0.00, vs. consensus of $148 million and $(0.01), and guidance of $138-148 million and $(0.01). We believe management has undertaken an “under-promise and over-deliver” approach to guidance, strengthening our belief that it will avoid a miss. Our FY estimates are for bookings of $820 million and EPS of $0.04, vs. consensus of $788 million and $0.01, and guidance of $760-810 million and $0.01-0.03."

The analyst notes Zynga appears determined to address the “play anywhere” free-to-play market by leading with mobile games and ensuring that its games are available cross-platform. He also said Zynga management is focused on the top 20 mobile markets, and intends to focus its new games on the highest revenue genres in those markets.

They also expect Zynga to profitably grow its business and think that Zynga’s current staffing levels imply that a significant number of new products are on the horizon.

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 $4.20 yesterday.

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