Zynga (ZNGA) – Analysts’ Weekly Ratings Changes
A number of firms have modified their ratings and price targets on shares of Zynga (NASDAQ: ZNGA) recently:
- Zynga was downgraded by analysts at Robert W. Baird from an “outperform” rating to a “neutral” rating. They now have a $3.00 price target on the stock, down previously from $6.00.
- Zynga was downgraded by analysts at Bank of America to an “underperform” rating.
- Zynga had its “underweight” rating reaffirmed by analysts at Evercore Partners.
- Zynga had its “neutral” rating reaffirmed by analysts at Citigroup. They now have a $4.00 price target on the stock.
- Zynga had its price target lowered by analysts at Wedbush from $7.00 to $4.00. They now have an “outperform” rating on the stock. They wrote, “Zynga pre-announced revenue between $300 – 305 million, compared with our prior estimate of $354 million and consensus of $276 million. Zynga expects non-GAAP EPS of $(0.01) – 0.00, compared with our $0.01 estimate and consensus of $0.00. The company cited weakness in certain games within its Ville-style category, although FarmVille2 drove solid daily bookings, on par with CastleVille and mobile has remained strong. The company did not provide Q3 guidance.”
- Zynga had its “neutral” rating reaffirmed by analysts at Sterne Agee. They wrote, “While we were not surprised that outlook was lowered, the magnitude of the guidance reduction did surprise us. In our opinion, preserving cash ($1.85 net cash per share) and quickly right-sizing the business will be critical in the near-term. Unfortunately, we see significant layoffs in the coming months.”
- Zynga had its price target lowered by analysts at Jefferies Group from $3.00 to $2.50. They now have a “hold” rating on the stock. They wrote, “Down about 19% after hours, Zynga is now trading close to cash as it materially lowered Adj. EBITDA outlook for the second time in roughly 10 weeks. The bad news continued as the company said it would write down roughly half the value (~$85-95MM) of OMGPOP, which Zynga acquired for ~$180MM in March. Going forward, we expect more details about cost cuts on the Oct. 24 earnings call.”
- Zynga had its “outperform” rating reaffirmed by analysts at Wedbush.
- Zynga had its price target lowered by analysts at BMO Capital Markets from $5.00 to $3.00. They now have a “market perform” rating on the stock. They wrote, “The company experienced a weaker-than-expected performance in its “invest and express” web-based games – essentially its Ville games. Zynga also lowered its expectations for the balance of the year to reflect a weaker-than-expected performance from The Ville as well as delays in the launch of new titles. We are lowering our estimates for 2012 and 2013 to reflect the current challenges. We are also reducing our 12-month price target.”
Shares of Zynga Inc. opened at 2.435 on Wednesday. Zynga Inc. has a 52 week low of $2.21 and a 52 week high of $15.91. The company’s market cap is $1.850 billion.
Zynga Inc. (Zynga), is a provider of social game services with 240 million average monthly active users over 175 countries.