Zynga Inc (NASDAQ:ZNGA) is still struggling to make a comeback while its rival King Digital Entertainment PLC (NYSE:KING) continues to top the charts. Piper Jaffray analyst Michael Olson said that he expects the social gaming company to report second quarter results in-line with the Wall Street consensus. Olson reached that estimate after analyzing the iOS top grossing apps.

Zynga Earnings

Ranking of Zynga games improved slightly in Q2

Piper Jaffray reiterates its Neutral rating on Zynga with $4.50 price target. Shares of the San Francisco-based company fell 1.25% to $3.15 on Monday. Analysts polled by FactSet expect Zynga to report $190.96 million in revenues for the June quarter. Zynga is unlikely to return any profit in the recently concluded quarter.

Olson observed that the overall ranking of Zynga games in the top 200 has shown a slight increase. The ranking of its titles in top 20 highest grossing list also improved during the second quarter. That’s consistent with the research firm’s forecast of moderate sequential growth. Piper Jaffray said Zynga’s ability to meet Wall Street expectations for the third quarter will depend on the success of FarmVille 2. Olson is taking a “wait-and-see” approach to the company’s performance in the second half of 2014.

Zynga rival King Digital continues to bring one after another hit

Piper Jaffray says it will show some confidence in Zynga stock if the company lowers its guidance for 2015, and Wall Street expectations are also revised downwardly. Currently, Wall Street forecasts 2015 bookings growth of 21%, relatively higher than Olson’s estimate of 17% YoY growth. Meanwhile, Piper Jaffray has upgraded King Digital from Neutral to Overweight. The research firm also increased its price target from $19 to $28.

Olson said King Digital is not a one-time wonder. After the success of its Candy Crush Saga, the company’s Farm Heroes and Pet Rescue have been among the 15 highest grossing apps in iOS for the past six months. The success of Bubble Witch Saga 2 suggests that King Digital can make successful sequels.