Zynga Inc (NASDAQ:ZNGA) stock rating has been lowered from Outperform to Neutral by Zacks analysts in a research note to the investors issued on Monday, assigning it A price target of $3.30. On Monday, Zynga shares closed down 1.95% at $3.02.
Recently, other analysts have also released their ratings on Zynga. Wedbush analysts have lowered the price target of Zynga from $7.00 to $6.00 in a research note to the investors on August 8th. Benchmark Co analyst lowered their price target on the game maker from $3.08 to $2.83 in a research note to the investors on August 8th. Separately, analysts at BMP Capital Market lowered the price on the stock from $4.50 to $3.25 in a research note to the investors on August 8th. Zynga has an average rating of Hold and a consensus price target of $3.86.
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Director Willliam B. Gordon dropped 500,000 shares of Zynga stock in a transaction on Tuesday, August 19th. Gordon sold shares at an average price of $3.01 for a total value of $1,505.000. The transaction was released in a legal filing with the Securities & Exchange Commission (SEC).
Zynga needs a new successful title
The maker of popular games like FarmVille and Words with Friends is focusing on mobile sports games to revive. Recently, the company released NFL showdown, and experts believe that Zynga needs to make another successful title to revive.
Zynga is expecting a good upside from NFL showdown, and describes the game as “a mobile-first football manager simulation game that delivers fans a new way to connect and compete with their friends every day.”
Mike Hickey, an analyst with the Benchmark Company, said that Zynga is making efforts to adopt EA model, and Golf can be successful if implemented well. However, Hickey added that partnering with Tiger Woods is not that creative, instead Zynga would have entered into an agreement with some younger star.
Zynga shares declined 20% this year and are more than 80% below the all-time high. Despite the struggle, Zynga shares are not necessarily cheap, and are trading at about 75 times 2015 earnings estimates. The company is facing fierce competition from the likes of Angry Birds developer Rovio and Candy Crush Saga maker King Digital.