Zynga Inc (ZNGA)

[Trevor11]

ZNGA: REMAINS CHEAP, 67.13% UPSIDE, $6.00 PRICE TARGET, FEB. 8TH, WEDBUSH




THE STOCK … REMAINS CHEAP



DIGITAL GAMING MARKET IS DETERMINED TO CROSS $180.00 BILLION BY 2020

ZYNGA (NASDAQ:ZNGA) HAS BEEN GIVEN A $6.00 PRICE TARGET BY RESEARCH ANALYSTS AT WEDBUSH IN A RESEARCH NOTE ISSUED TO INVESTORS ON THURSDAY, FEBRUARY 8TH.

The brokerage currently HAS A “BUY” RATING ON THE STOCK. WEDBUSH’S PRICE TARGET POINTS TO A POTENTIAL UPSIDE OF 67.13% FROM THE COMPANY’S CURRENT PRICE




ZYNGA: FINALLY A REAL COMPANY
FEB.16.18 | ABOUT: ZYNGA (ZNGA)

STONE FOX CAPITAL
Long/short equity, growth at reasonable price, research analyst, Deep Value
Stone Fox Capital

(10,170 FOLLOWERS)
SUMMARY
ZYNGA HAS STARTED GENERATING CONSISTENTLY SOLID CASH FLOWS.
The company maintains a large cash balance and other valuable assets.
THE STOCK VALUATION REMAINS CHEAP with a large gap between a leader in the sector.
For the longest time, business TV hosts have joked about a company being the next Zynga (ZNGA) in reference to a stock that was overhyped and should've never gone public. THE JOKE IS FINALLY ON THE TV HOSTS that haven't kept up on the emerging story. As long as the market view doesn't adapt to the new realities of a nicely profitable company, value will exist in the stock.
Real Financials
When Zynga started 2017, the mobile-game developer was coming off a year where the company reported a net loss of over $100 million. THE CONSTANT PROGRESS in shifting the business to mobile highlighted in the previous researchwas mostly ignored due to declining web revenues and deteriorating financials.
The company ended the year by generating adjusted EBITDA that surged over $89 million from last year to $138 million. EVEN BETTER, ZYNGA ENDED THE YEAR BY GENERATING NET INCOME OF $27 MILLION AND SUBSTANTIAL OPERATING CASH FLOW OF $95 MILLION. The positive cash flows are a huge improvement from the prior years though Zynga is still far from the pre-IPO levels.

Source: Rocket Financial
The ability of Zynga to start GENERATING SOLID CASH FLOWS CHANGES THE FINANCIAL VIEW OF THE STOCK. The company already has a $700 million cash balance and sizable value from the HQ office in San Francisco. These assets aren't fully valued in the stock due to the previous operating losses.

ANALYSTS FORECAST SOME SOLID GAINS GOING FORWARD WITH green Zynga expects to keep operating expense growth at only low single-digit growth rates requiring limited revenue growth to expand margins and hence net income. THE MOBILE-GAME DEVELOPER DOESN'T NEED ANY HIGH RISK, BIG HITS TO BUILD THE BUSINESS.
Real Value
The valuation comparison to Electronic Arts (EA) really takes shape as Zynga is able to generate solid cash flows. Zynga has a long way to close this valuation gap with a sector leader in EA.
ZNGA EV to Revenues (Forward) data by YCharts
The really odd part of the Zynga story is that one can actually focus on calculating a P/E multiple. The stock now trades at roughly 20x 2019 EPS estimates. Stripping out cash, the stock trades at about 15x those EPS estimates.
Rather low multiples for a stock forecasting to double EPS estimates in two years. Not to mention, the company is very conservative with guidance. THE Q4 BOOKINGS CONTINUED THIS TREND BEATING INTERNAL GUIDANCE OF $210 MILLION BY $13 MILLION. The Q1 guidance for bookings of $210 million sets up another beat considering the addition of the mobile card games from Peak Games.
Takeaway
Zynga spent a few years in the financial wilderness making most think the company was never returning into the real financial world. Beneath the surface, the game developer was always on a constant shift to mobile that is finally not held back by declines in web revenues.
The stock offers real value to shareholders and strong forever franchises like Words with Friends and Zynga Poker that reduce the risk of game development. At the same time, ZYNGA IS ONLY ONE SURPRISE HIT GAME AWAY FROM REWARDING PATIENT SHAREHOLDERS WITH LARGE GAINS. Though, the stock only needs consistent growth from here to keep shareholders happy and close the multiple gap with EA.
Disclosure: I am/we are long ZNGA.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.


Source:

https://seekingalpha.com/article/4147819-zynga-finally-real-company



PRESS RELEASE
ZYNGA TO PRESENT AT THE MORGAN STANLEY TECHNOLOGY, MEDIA AND TELECOM CONFERENCE
PUBLISHED: FEB 14, 2018 9:00 A.M. ET


SAN FRANCISCO, Feb 14, 2018 (BUSINESS WIRE) -- Zynga Inc. ZNGA, +0.56% a leading social game developer, announced today its Chief Executive Officer Frank Gibeau will present at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco on Wednesday, February 28, 2018.
The presentation is scheduled to begin at 2:40 p.m. Pacific Time (5:40 p.m. Eastern Time) and will be available through a live audio webcast, which will be accessible on Zynga’s Investor Relations website at investor.zynga.com. A replay will also be available on Zynga's Investor Relations website following the event.

About Zynga Inc.
Since its founding in 2007, Zynga’s mission has been to connect the world through games. To date, more than 1 billion people have played Zynga’s games across web and mobile, including FarmVille, Zynga Poker, Words With Friends, Hit it Rich! Slots and CSR Racing. Zynga’s games are available on a number of global platforms including Apple iOS, Google Android, Facebook and Zynga.com. The company is headquartered in San Francisco, Calif., and has additional offices in the U.S., Canada, U.K., Ireland, India, Turkey and Finland. Learn more about Zynga at https://companyblogdotzynga.com/ or follow us on Twitter and Facebook.

View source version on businesswire.com: http://www.businesswire.com/news/home/20180214005041/en/
SOURCE: Zynga Inc.
Zynga Inc.
Investor Relations Contact
Rebecca Lau
[e-mail]
or
Press Contact
Stephanie Hess
[e-mail]
Copyright Business Wire 2018

https://www.marketwatch.com/story/zynga-to-present-at-the-morgan-stanley-technology-media-and-telecom-conference-2018-02-14


PRESS RELEASE
DIGITAL GAMING MARKET IS DETERMINED TO CROSS $180.00 BILLION BY 2020
PUBLISHED: FEB 12, 2018 9:10 A.M. ET


FEB 12, 2018 (FINANCESWIRE VIA COMTEX) -- Tweet

Florida, February 12, 2018: The Paymium and Freemium subscription model is going to lead in the social and mobile gaming platforms whereas Premium subscription model will continue to lead in the PC and Console gaming devices in the coming years.
MRE predicts indie game developers will lead the digital gaming market in social and casual gaming platforms. As per the study, Global digital gaming market will see a significant growth in the coming years due to the increase in the government push such as in the mature gaming markets such as UK and US.
"Anytime and anywhere playing is the leading trend in the digital gaming market. This trend is being supported by the lightweight portable gaming devices such as Smartphone and tablet. Today, majority of the gamers across the world prefer playing games while travelling on their portable gaming devices according to the end-user survey results".
"The global digital gaming market is a highly competitive market and it is estimated to reach $180.86 billion by 2020".
Browse Full Report: https://www.marketresearchengine.com/reportdetails/global-digital-gaming-market
"The Asia-Pacific region is one of the fastest growing digital gaming market and China is one of the leading digital gaming market in the region due to the growing number of gaming audience in the country".
The report aims to highlight key insights from Vendors and End users. The report provides an in-depth analysis and forecast about the industry covering the following key features:

• Gaming Audience, Gaming Devices, Gaming Platforms and Gaming Subscription models.
• The Global Digital Gaming market is divided into six regions: North America, Western Europe, Asia-Pacific, Central Eastern Europe (CEE), Middle East & Africa (MEA) and Latin America.
• Competitive benchmarking analysis to optimize short term and long term strategy of the organisations.
• Stakeholders' insights and key trends (current and future) of the market.
Companies Mentioned in this Report are as below:
• Sony Corporation
• Microsoft Corporation
• Nintendo Co., Ltd.
• Samsung Electronics Co Ltd
• LG Electronics Inc.
• ZYNGA INC.
• Electronic Arts Inc. (EA)
• King Digital Entertainment Plc
• Sega Games Co. Ltd
• NVidia Corporation
• Google Inc
• Amazon.com, Inc.
Request Sample Report: https://www.marketresearchengine.com/reportdetails/global-digital-gaming-market
Table of Contents
1 INTRODUCTION
2 Research Methodology
3 Industry Trends
4 Market Overview
5 Gaming Audience: Market Size & Analysis
6 Devices: Market Size & Analysis
7 Gaming Platform: Market Size & Analysis
8 Company Profiles
8.1 Sony Corporation
8.2 Microsoft Corporation
8.3 Nintendo Co., Ltd.
8.4 Samsung Electronics Co Ltd
8.5 LG Electronics Inc.
8.6 ZYNGA INC.
8.7 Electronic Arts Inc. (EA)
8.8 King Digital Entertainment Plc
8.9 Sega Games Co. Ltd
8.10 NVidia Corporation
8.11 Google Inc
8.12 Amazon.com, Inc.
8.13 International Business Machines Corp
8.14 Apple Inc
8.15 Facebook Inc
8.16 APAR GAMES
8.17 Zatun
8.18 Kabam
8.19 Rolocule
8.20 Tapinator, Inc
Media Contact
Company Name: Market Research Engine
Contact Person: John Bay
Email: [e-mail]
Phone: [phone]
Country: United States
Website: https://www.marketresearchengine.com/

Source: http://www.financeswire.com/digital-gaming-market-is-determined-to-cross-180-00-billion-by-2020

Source:
https://www.marketwatch.com/story/digital-gaming-market-is-determined-to-cross-18000-billion-by-2020-2018-02-12

ZYNGA (ZNGA) GIVEN A $6.00 PRICE TARGET BY WEDBUSH ANALYSTS
POSTED BY JOYCE RAMIREZ ON FEB 19TH, 2018 // No Comments
ZYNGA (NASDAQ:ZNGA) HAS BEEN GIVEN A $6.00 PRICE TARGET BY RESEARCH ANALYSTS AT WEDBUSH IN A RESEARCH NOTE ISSUED TO INVESTORS ON THURSDAY, FEBRUARY 8TH. The brokerage currently HAS A “BUY” RATING ON THE STOCK. WEDBUSH’S PRICE TARGET POINTS TO A POTENTIAL UPSIDE OF 67.13% FROM THE COMPANY’S CURRENT PRICE. Wedbush also issued estimates for Zynga’s Q1 2019 earnings at $0.04 EPS, Q2 2019 earnings at $0.05 EPS, Q3 2019 earnings at $0.06 EPS and Q4 2019 earnings at $0.06 EPS...
Source:

https://ledgergazette.com/2018/02/19/wedbush-analysts-give-zynga-znga-a-6-00-price-target.html




Do Options Traders Know Something About Zynga (ZNGA) Stock We Don't?
February 16, 2018, 08:52:00 AM EDT By Zacks Equity Research, Zacks.com


Shutterstock photo
Investors in Zynga Inc.ZNGA need to pay close attention to the stock based on moves in the options market lately. That is because the Feb 23, 2018 $4.50 Call had some of the highest implied volatility of all equity options today.


Source:

https://www.nasdaq.com/article/do-options-traders-know-something-about-zynga-znga-stock-we-dont-cm922819