informa
1 MIN READ
News

Analysts Divided Over Zynga's Outlook Following Public Debut

Analyst firm Wedbush Securities sees good things in Zynga's future, giving the firm an "outperform" rating on Monday that stands in stark contrast to the "underperform" given last week by Sterne Agee.
Now that Zynga has made its debut on the stock market, analyst firm Wedbush Securities has given the company an optimistic "Outperform" rating, with a 12 month price target of $12.50 per share. This optimistic figure stands in stark contrast to estimates from Sterne Agee, which last week gave the company a target price of just $7 per share -- significantly lower than Friday's opening price of $10. With such wildly different estimates, analysts are clearly divided over the future of the social gaming powerhouse. Wedbush's Michael Pachter noted that he believes Zynga is "well-positioned for long-term growth," particularly due to emerging opportunities in the mobile space and the company's ability to drive ad revenue. In a prior report, however, Sterne Agee's Arvind Bhatia noted that Zynga's growth has slowed down considerably in recent months, noting that many of its major titles, like CityVille and FarmVille, have already reached their peak user counts. In addition, Cowen and Company last week gave the company a "Neutral" rating, and pointed to "significant concerns" regarding the company's potential for growth in the coming months. After its first day on NASDAQ, Zynga saw its share price drop by 5 percent, settling at $9.50 per share by market close. Trading today closed at $9.05, with shares selling for as low as $8.75.

Latest Jobs

Manticore Games

San Mateo, California
8.23.22
Senior Software Engineer - Mobile

Sony PlayStation

San Diego, California
6.23.22
Sr. Online Programmer

The Walt Disney Company

Glendale, California
8.1.22
Associate Marketing Manager - Walt Disney Games

Insomniac Games

Burbank, California
8.26.22
Accessibility Design Researcher
More Jobs   

CONNECT WITH US

Explore the
Subscribe to
Follow us

Game Developer Job Board

Game Developer Newsletter

@gamedevdotcom

Explore the

Game Developer Job Board

Browse open positions across the game industry or recruit new talent for your studio

Browse
Subscribe to

Game Developer Newsletter

Get daily Game Developer top stories every morning straight into your inbox

Subscribe
Follow us

@gamedevdotcom

Follow us @gamedevdotcom to stay up-to-date with the latest news & insider information about events & more