Zynga (ZNGA) Well Positioned Into Results Due to Operational Benefits from Virus Recovery - Benchmark
- Wall Street surges to all-time closing high on earnings, economic revival
- Was Intel's (INTC) Second Quarter a Speedbump or Inflection?
- Twitter (TWTR) Gains After Beating Q2 Estimates, Analysts Raise PTs as Brand Recovery Accelerates
- U.S. dollar on track for second week of gains; Fed meeting in focus
- Snap (SNAP) Surges 17% After Smashing Q2 Views Across the Board to Yield a Dozen Price Target Hikes
News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.
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."
Shares of Zynga closed at $9.45 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- AP Moller Maersk (MAERSKB:DC) (AMKBY) PT Raised to DKK18,500 at Goldman Sachs
- Mphasis Ltd. (MPHL:IN) PT Raised to INR2,540 at Goldman Sachs
- Sika AG (SIKA:SW) (SKFOF) PT Raised to CHF376 at Goldman Sachs
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View
Related EntitiesDefinitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!