Zynga Inc (ZNGA) Price Target Raised By Piper Jaffray

Zynga Inc (ZNGA) Price Target Raised By Piper Jaffray

Zynga Inc (NASDAQ:ZNGA) has been reiterated a ‘Neutral’ rating by Michael Olson, an analyst at Piper Jaffray in a report released on Tuesday. The analyst raised the price target of the stock from $2.75 to $3.50 on a stable yet unclear recovery for the game maker.

Zynga Inc (ZNGA) Price Target Raised By Piper Jaffray

As per the analyst a favourable outcome “from here” will result in booking growth, in the first half of 2014, owing to strong responses for new mobile games, persistent stability in the core gaming and a decent contribution from real money gaming. “While it remains too early to call, we have identified a number of positive signs that suggest a recovery is still achievable,” says the report.

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On New games

The new games from Zynga Inc (NASDAQ:ZNGA) including Draw Something 2, Running with Friends, War of the Fallen and Ayakashi Ghost Guild are getting initial good responses, believes the report. “We define success as showing up in the top 200 grossing iOS rankings and maintaining or improving rank over time.” Zynga Inc (NASDAQ:ZNGA) is still spending heavily on the promotion of its new games like Running with Friends etc. These games are currently in their ‘honeymoon’ period and are getting good percentage of revenues from such promotions, “which are not captured by iOS app rankings.”

Zynga Stock Performance

In the midday trading yesterday, stocks of the game designer were up 1.18 percent to $3.44 and closed on Monday at $3.40. The 52 week high for the stock is $9.54 and for the same period low is $2.09. Zynga currently has a market cap of about $2.731 billion, and stocks 50-day moving average is currently $3.40.

Zynga Earnings

The company revealed that it had earned a surprise 1 cent per share in the first quarter of the year on revenue of $264 million. Analysts were expecting a loss of 4 cents per share in its earnings report on revenue of $265 million.

Earnings for the same period a year earlier stood at $0.06 per share. Revenue for the quarter was 17.9 percent below the year ago quarter. For the current quarter, analyst expect Zynga Inc (NASDAQ:ZNGA) to report $-0.04 EPS.

Other ratings

Other research firms have also commented on Zynga Inc (NASDAQ:ZNGA) recently. TheStreet reiterated its ‘hold’ rating on the company’s stock in a report issued to investors on Friday. Wedbush analysts now have an ‘outperform’ rating on the game maker’s stock. Wedbush also raised the price target on the shares from $4.00 to $4.25 in a report issued to investors on Thursday, April 25.

Zynga Inc (NASDAQ:ZNGA)  has a consensus ‘hold’ rating for it stock with a price target of $3.74

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