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MKM Partners Initiates Zynga With Bullish Rating On Bright Growth Prospects

Priya Nigam
·1 min read

Zynga Inc (NASDAQ: ZNGA) is well positioned to drive bookings growth of 13% and adjusted EBITDA growth of 18% from 2020 through 2023, according to MKM Partners.

The Zynga Analyst: Eric Handler initiated coverage of Zynga with a Buy rating and a price target of $12.

The Zynga Thesis: The company has a leadership position in the mobile games space, which is the fastest growing segment in the videogames industry, Handler said.

He mentioned that Zynga’s growth going ahead is likely to be propelled by a combination of three factors:

  • Organic growth

  • Integration of its recent acquisition of Peak Games and the pending deal for Rollic Games

  • Steady margin expansion

“In addition, with its strong FCF conversion and a sizable amount of debt capacity, Zynga has the ability to remain very active with M&A. Plus, we see call option value on management's ability to expand into new segments and platforms within mobile gaming and increase its international presence,” the analyst wrote in a note.

Latest Ratings for ZNGA

Date

Firm

Action

From

To

Sep 2020

MKM Partners

Initiates Coverage On

Buy

Aug 2020

Wells Fargo

Maintains

Equal-Weight

Aug 2020

Piper Sandler

Maintains

Overweight

View More Analyst Ratings for ZNGA
View the Latest Analyst Ratings

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