RBC Capital Cuts Price Target on King Digital Entertainment (KING) Following 2Q15 Earnings
RBC Capital maintained an Outperform rating on King Digital Entertainment (NYSE: KING), and cut the price target to $15.00 (from $17.00), following its 2Q15 earnings report. Revenue of $496MM came in above Street estimates at $482MM. Gross Bookings of $529MM came in ahead of Street estimates of $513MM and guidance of $490-520MM despite FX impacts. KING guided Q3 Bookings to a range of $460-485MM.
Analyst Mark Mahaney commented, "King reported a beat and lower Q2, with key traffic metrics deteriorating and with a lack of diversification away from its core Candy Crush franchise. Bookings guidance for Q3/Q4 implies material Y/Y declines, though ’15 EBITDA outlook maintained. We are lowering estimates and our PT to $15 and maintaining our Sector Perform."
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Shares of King Digital Entertainment closed at $15.20 yesterday.