Benchmark Sees Sale/Leaseback Accelerating Zynga (ZNGA) M&A Agenda

May 29, 2019 7:40 AM EDT
Get Alerts ZNGA Hot Sheet
Price: $8.01 +0.25%

Rating Summary:
    25 Buy, 8 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 7 | Down: 15 | New: 24
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Benchmark analyst Mike Hickey reiterated a Buy rating and $8.00 price target on Zynga (NASDAQ: ZNGA) after the company ZNGA announced a sale leaseback agreement with Beacon Capital Partners for their San Francisco headquarters. This transaction has been widely speculated about and the cash infusion can enhance ZNGA's near term growth profile via M&A.

The analyst stated "We project ZNGA as cash flow positive, and will likely end fiscal 2019 with nearly $1B in cash". "We expect ZNGA will seek to acquire assets that could include GLUU mobile and / or smaller studios looking to scale their business. Additional use of capital will likely be continued repurchase of shares". "ZNGA has a strong recent track record of acquisitions including Gram Games and Small Giant Games. We expect the M&A market will continue to provide opportunities for additional deals".

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 $6.13 yesterday.

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