Zynga Inc (ZNGA)

[Trevor11]

ZNGA: AUG 8, 2016, STOCK RISING, AS BARCLAYS,INCREASED,IT'S,2017,EARNINGS










ZYNGA REPORTED BETTER-THAN-EXPECTED REVENUE FOR THE SECOND QUARTER LAST WEEK,

BARCLAYS NOTED THAT ZYNGA MAY HAVE REPORTED LOWER GUIDANCE BECAUSE IT'S FOCUSED ON EXECUTION AND "WANTED TO SET A LOW BAR." However, A HIGHER BOOKINGS FORECAST COULD HAVE BEEN THE CATALYST TO HELP THE STOCK BREAK THROUGH TO $3, THE FIRM ADDED.


FOR THAT REASON, BARCLAYS MAINTAINED ITS "EQUAL WEIGHT" RATING ON THE STOCK, AS WELL AS ITS $3 PRICE TARGET.
ADDITIONALLY, ZYNGA'S UPCOMING RELEASE OF "DAWN OF TITANS" IN THE FOURTH QUARTER COULD HELP CEMENT DOUBLE-DIGIT BOOKINGS GROWTH IN 2017, BARCLAYS SAID.





ZYNGA (ZNGA) STOCK ADVANCES, BARCLAYS RAISES GUIDANCE

ZYNGA (ZNGA) STOCK WAS RISING IN LATE-AFTERNOON TRADING TODAY AS BARCLAYS INCREASED ITS 2017 EARNINGS FORECAST FOR THE COMPANY.


ANNIE PALMER
FOLLOW
AUG 8, 2016 3:17 PM EDT



NEW YORK (TheStreet) -- Shares of Zynga (ZNGA) were HIGHER IN LATE-AFTERNOON TRADING TODAY AS BARCLAYS RAISED ITS FULL-YEAR 2017 EARNINGS GUIDANCE for the San Francisco-based online and mobile game developer.
THE FIRM INCREASED ITS EBITDA OUTLOOK ON ZYNGA TO $91 MILLION FROM $76 MILLION, citing cost savings.

"WE ARE ENCOURAGED BY MANAGEMENT'S ONGOING EFFORTS TO REDUCE THE COST STRUCTURE OF THE BUSINESS, AND THINK THERE IS STILL PLENTY OF RUNWAY THERE," Barclays continued in an analyst note. "...

WE THINK ZYNGA IS DOING ALL THE RIGHT THINGS: CUTTING COSTS, RATIONALIZING GAME DEVELOPMENT, AND PROMOTING LONG-TERM ENGAGEMENT - but we are still waiting for that breakout hit."
ZYNGA REPORTED BETTER-THAN-EXPECTED REVENUE FOR THE SECOND QUARTER LAST WEEK,...

BARCLAYS NOTED THAT ZYNGA MAY HAVE REPORTED LOWER GUIDANCE BECAUSE IT'S FOCUSED ON EXECUTION AND "WANTED TO SET A LOW BAR." However, A HIGHER BOOKINGS FORECAST COULD HAVE BEEN THE CATALYST TO HELP THE STOCK BREAK THROUGH TO $3, THE FIRM ADDED.
FOR THAT REASON, BARCLAYS MAINTAINED ITS "EQUAL WEIGHT" RATING ON THE STOCK, AS WELL AS ITS $3 PRICE TARGET.

ADDITIONALLY, ZYNGA'S UPCOMING RELEASE OF "DAWN OF TITANS" IN THE FOURTH QUARTER COULD HELP CEMENT DOUBLE-DIGIT BOOKINGS GROWTH IN 2017, BARCLAYS SAID.


SEPARATELY, THESTREET RATINGS OBJECTIVELY RATED THIS STOCK ACCORDING TO ITS "RISK-ADJUSTED" TOTAL RETURN PROSPECT OVER A 12-MONTH INVESTMENT HORIZON. NOT BASED ON THE NEWS IN ANY GIVEN DAY, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate ZYNGA INC as a Hold with a ratings score of C-. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. THE COMPANY'S STRENGTHS CAN BE SEEN IN MULTIPLE AREAS, SUCH AS ITS REVENUE GROWTH, LARGELY SOLID FINANCIAL POSITION WITH REASONABLE DEBT LEVELS BY MOST MEASURES AND SOLID STOCK PRICE PERFORMANCE...


Source:

https://www.thestreet.com/story/13668354/1/zynga-znga-stock-advances-barclays-raises-guidance.html