Zynga (ZNGA) PT Cut at Benchmark Post Q2

Benchmark analyst Mike Hickey reiterated a Hold rating and cut his price target on Zynga (NASDAQ: ZNGA) to $2.83 (from $3.08) following weak Q2 results and outlook.

Hickey commented, "We view the Company's return profile as neutral; benefiting from a meaningful valuation contraction (up 7.4% from 52 week low) (20% reduction in short interest) over now rationalized performance expectations and strong trends in mobile game markets, offset by less than anticipated performance from FarmVille 2 on mobile, game delays related to execution issues, limited pipeline transparency, continued executive shuffle, on-going performance erosion from web, elevated marketing expense, an indexing toward lower margin licensed games and potentially aggressive fiscal '15 performance expectations from street consensus. The management team continues to articulate limited desire to reduced headcount or initiate other cost reduction programs, an action that could unlock value, in our view."

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 $2.92 yesterday.

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