Online video game developer Zynga Inc (NASDAQ: ZNGA) has the potential to show notable upside versus the Street's estimates through 2021, according to Wedbush.
Michael Pachter maintained an Outperform rating on Zynga with an unchanged $9 price target. Pachter also added Zynga's stock to the research firm's "Best Ideas List."
Zynga's two key title games "Empires & Puzzles" and "Merge Dragons!" — along with three new releases later this year — should help the company beat expectations over the coming years, Pachter said in a Tuesday note. (See his track record here.)
"We expect the shares to trade closer to our price target over the remainder of the year," the analyst said.
Pachter's inclusion of Zynga as a top pick follows a bullish research note at the beginning of August. The analyst lifted his price target on Zynga's stock to $9 at that time in reaction to the company's 14th consecutive quarter of sequential adjusted EBITDA growth in the second quarter.
Zynga's third-quarter guidance, which was mostly in-line with expectations, could prove to be conservative ahead of new game launches, according to Wedbush.
Zynga shares were up 2.68% at $5.75 at the time of publication Tuesday.
Zynga Is Well Positioned In The Favorable Video Game Market, Stifel Says
Analysts Rave About Zynga's Q1; 'Game of Thrones' Game Launch Likely Coming In Q2
Latest Ratings for ZNGA
View More Analyst Ratings for ZNGA
View the Latest Analyst Ratings
See more from Benzinga
- Red Robin Poised To Disappoint Street In 2020, BofA Says In Downgrade
- Starbucks CEO Sees Zero Signs Of Pending Recession
- A Top Amazon Finance Exec Departs
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.