Needham & Company Maintains a 'Strong Buy' on Glu Mobile (GLUU); ;"Deer Hunter" Rights For Multiple Platforms

Needham & Company maintains a 'Strong Buy' on Glu Mobile (NASDAQ: GLUU) price target of $8.00

Analyst, Sean McGowan, said, "GLUU announced on April 4th that it had acquired the “Deer Hunter” property from Atari. GLUU has produced games based on Deer Hunter in the past, and was about to broadly release “Deer Hunter Reloaded” under a license agreement. We believe that by acquiring the property, GLUU should be able to eliminate its expected royalty payments, which should more than offset the cost (both cash interest and non-cash amortization), but at this time we are making no changes to our estimate. Because this title was already in GLUU’s plan for 2012, we see no impact to revenues; gross margins should be better, providing some upside potential, but we will conservatively leave our estimate unchanged."

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 $4.82 yesterday.

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