Zynga (ZNGA) Well Positioned Into Results Due to Operational Benefits from Virus Recovery - Benchmark

July 20, 2020 10:33 AM EDT
Get Alerts ZNGA Hot Sheet
Price: $10.45 +1.06%

Rating Summary:
    25 Buy, 8 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 12 | New: 23
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Benchmark analyst Mike Hickey reiterated a Buy rating and $11.00 price target on Zynga (NASDAQ: ZNGA) ahead of results, citing operational benefit due to player audience, engagement, and monetization, all stemming from the virus.

The analyst stated "ZNGA is expected to release F2Q20 financial performance on Wednesday 08.05.2020 at 5PM ET, Dial: 1.800.537.0745, Code: 5769759. We anticipate ZNGA will deliver F2Q20 financial outperformance, initiate strong F3Q20 financial view and raise FY20 guidance. We expect the virus influence will provide a sustained operational benefit toward player audience, engagement and monetization. We suspect the recent acquisition of Peak will provide a meaningful driver of audience, bookings, margins and free cash flow. We expect that as ZNGA ramps operating margin, valuation multiples will elevate toward 6x bookings. ZNGA last reported $575M in cash (includes Peak $925M in cash acquisition), $577M in debt and $199M in FCF TTM. We believe ZNGA is counter pandemic and recession."

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 $9.45 yesterday.

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