Wedbush Cuts Price Target on Glu Mobile (GLUU) to $2.25 Following 2Q
Wedbush maintained a Neutral rating on Glu Mobile (NASDAQ: GLUU), and cut the price target to $2.25 (from $2.45), following the company's 2Q earnings report. Bookings were $51 million, versus the consensus estimates of $47 million, and guidance of $46 – 49 million. Management decreased FY:16 guidance for bookings to $195 – 202 million from $215 – 235 million,
Analyst Nick McKay commented, "After seeing many of its recent releases underperform earlier expectations, Glu has switched its focus to evergreen games. We are maintaining our NEUTRAL rating until we see evidence that its new approach is delivering as described. Shares will likely trade under 1.00x FY:17 consensus revenue until one of its new releases resonates with payers on a sustained basis."
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Shares of Glu Mobile closed at $2.29 yesterday.