Glu Mobile Inc. Positioned For Upside Potential In 2H Of 2015: Analyst

Glu Mobile Inc. Positioned For Upside Potential In 2H Of 2015: Analyst

Glu Mobile, Inc. is an gaming app developer for mobile phones.  Over the past few years, Glu Mobile has struggled to find its footing and battle other app developers for customer booking time. However, Glu Mobile has been unstoppable so far in 2015, with the stock up nearly 68%.  Glu Mobile has two game apps that are ranked in the top 50 and two that are ranked beyond 100 in the app stores.  For games that within the top 50, analysts have found that these high ranked games have the ability to bring in $200,000 bookings per day on an average basis.  Furthermore, with several more games on the docket to be released later this year, analysts at Canaccord Genuity remain bullish on the stock with a “buy” rating and a $9 price target.

Glu Mobile looks for continued success with Deer Hunter and Kim Kardashian: Hollywood games

By far the most important game to Glu Mobile’s success right now has been Kim Kardashian: Hollywood.  The gaming app brought in 236,667 bookings per day for the company during the first quarter and second quarter bookings are estimated at 191,746.  Deer Hunter 2014 posted bookings per day of 98,889 during the first quarter and usage is expected to continue in the second quarter to 87,853, thanks to a new version of the game being due to release.  Thus far into 2015, Glu Mobile has released four of the sixteen games it plans to release in 2015.  Unfortunately, Blood and Glory Immorals and Frontline Commando WW2 have lagged expectations and have had a very limited impact for the company thus far.  That being said, analysts overall see bookings increasing 11.3% during the second quarter.

Glu Mobile

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Analysts see Glu Mobile valuation as “reasonable”

Glu Mobile is estimated to post full year 2016 earnings per share of $0.33 on revenue of $328 million.  Canaccord Genuity analysts see value in shares of Glu Mobile due to fact that it trades at 2x 2016 revenue estimates.  Comparing Glu Mobile and its rivals, Glu is expected to post an 18% growth in revenue in 2016, compared to average rival revenue growth of 13% during the same period.

Overall, Glu Mobile certainly is positioning itself very well right now within the mobile gaming space.  The company already has several very successful games in its portfolio and Glu Mobile still has 12 other games that are due out soon, which hopefully will catch the attention of mobile users.

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