Glu Mobile (GLUU) Surges as Analyst Translates Recent Game Success Into Dollars

Glu Mobile (NASDAQ: GLUU) is continuing its recent momentum today based in part on a bullish note from Cowen analyst Doug Creutz, who sharply raised his estimates and price target on the stock based on the strong post-launch performances of Kim Kardashian: Hollywood and Dino Hunter: Deadly Shores.

Creutz raised FY14 non-GAAP revenue and EPS estimates from $159.5MM to $212.0MM and $0.03 to $0.26, respectively, with the majority of the raise coming in Q3. The firm's new estimates are well ahead of consensus of $160.9MM and $0.03, respectively. The firm's new Q3:14E revenue of $78MM is roughly 2x current consensus and management guidance

On Kim Kardashian: Hollywood they estimate that (based on company filings) the title delivered around $75MM in mobile revenue for that quarter, for a $300MM annual run-rate

For Dino Hunter: Deadly Shores they are assuming that the game is currently operating at roughly a $40MM annual run-rate, with steady declines through the rest of the quarter and into Q4.

The analyst also said, notably, Contract Killer 3 and Diner Dash are yet to be launched this year; however, they are only assuming $3MM in Q3:14 and $6MM in Q4:14 from yet-to-be-launched titles.

The firm's new $10 price target (up from $6) is based on 20x FY16E EPS of $0.49.

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 are up 10.1% today to $7.47.

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