By MarketNewsVideo Zynga (ZNGA) was downgraded by Bank of America/Merrill Lynch (BAC) from buy to neutral with a price target of $3.90 as the risk/reward is not compelling at current price levels. …read more
Source: FULL ARTICLE at Forbes Markets
Tag Archives: ZNGA
24/7 Wall St. Closing Bell — March 11, 2013: Markets Recover Slightly from Low Open (BBY, BTU, SFD, ADBE, MT, CSIQ, CHYR, DKS, RENN, CVI, DMND, FCEL, URBN, BONT, SSI, BBRY, T, ZNGA, YHOO)
Filed under: Investing
U.S. equity markets opened lower this morning after France reported a decline in industrial production and China reported consumer inflation up more than expected (more coverage here). There was no significant data reported in the U.S. today, so the weak opening eventually gave way to buying, pushing stocks into positive gains by around noon. The gains were modest with financial stocks leading the gains, while energy, technology, and telecom stocks trailed along. In Japan, the nominee for the central bank’s Board of Governors said he did not think that the current asset purchase plan was big enough to allow the country’s to reach its 2% inflation goal. The volatility index notched a six-year low today (more coverage here).
The U.S. dollar index fell 0.12% today, now at 82.589. The GSCI commodity index is up 0.3% at 648.81, with commodities prices mixed again today. WTI crude oil closed up 0.1% today, at $92.06 a barrel. Brent crude trades down 0.7% at $110.10 a barrel. Natural gas is up 0.4% today at about $3.65 per million BTUs. Gold settled up 0.1% today at $1,578.00 an ounce.
The unofficial closing bells put the DJIA up about 50 points to 14,447.22 (0.35%), the NASDAQ rose nearly 9 points (0.26%) to 3,252.87, and the S&P 500 rose 0.32% or about 5 points to 1,556.22.
There were a several analyst upgrades and downgrades today, including Best Buy Co. Inc. (NYSE: BBY) raised to ‘overweight’ at Piper Jaffray; Peabody Energy Corp. (NYSE: BTU) cut to ‘market perform’ at BMO; Smithfield Foods Inc. (NYSE: SFD) raised to ‘neutral’ at BofA/Merrill Lynch; Adobe Systems Inc. (NASDAQ: ADBE) cut to ‘neutral’ at BofA/Merrill Lynch; and ArcelorMittal (NYSE: MT) raised to ‘buy’ at UBS.
Earnings reports since markets closed last Friday resulted in several price moves today, including these: Canadian Solar Inc. (NASDAQ: CSIQ) is down 14.6% at $3.19 (more coverage here); Chyron Corp. (NASDAQ: CHYR) is up 8.6% at $0.93; and Renren Inc. (NASDAQ: RENN) is up 0.7% at $3.09.
Before markets open tomorrow morning we are scheduled to hear from CVR Energy Inc. (NYSE: CVI), Diamond Foods Inc. (NASDAQ: DMND), Fuel Cell Energy Inc. (NASDAQ: FCEL), Urban Outfitters Inc. (NASDAQ: URBN), Bon-Ton Stores Inc. (NASDAQ: BONT), and Stage Stores Inc. (NYSE: SSI)
Some standouts among high-volume stocks today include:
BlackBerry (NASDAQ: BBRY) is up 13.4% at $14.81. The mobile phone maker got a boost from an announcement that AT&T Inc. (NYSE: T) would begin accepting pre-orders tomorrow for the company’s first touchscreen phone. More coverage here.
Zynga Inc. (NASDAQ: ZNGA) is up 10.6% at $3.95. The game developer’s shares jumped this afternoon following an analyst’s comment that Yahoo! Inc. (NASDAQ: YHOO) may be interested in acquiring the company.
Dick’s Sporting Goods Inc. (NYSE: DKS) is down 10.9% at $45.11. The sporting goods retailer reported weak results and offered lower guidance than analysts were expecting. More coverage here.
Stay tuned for Tuesday. We have noted the following events on the schedule (all times Eastern):
- 7:30 a.m. – National Federation of Independent Business small business optimism index
- 11:30 a.m. …read more
Source: FULL ARTICLE at DailyFinance
ZNGA, GLUU Rally As Nevada Legalizes Online Gambling
Shares of social gaming company’s Zynga and Glu Mobile are trading higher this morning after Nevada Gov. Brian Sandoval yesterday signed a measure legalizing online gambling in the state. Nevada’s Assembly and Senate quickly passed the measure yesterday in what the AP described as an emergency measure intended to win approval ahead of pending similar move by New Jersey. …read more
Source: FULL ARTICLE at Forbes Latest
BofA/ML Analyst Upgrades Zynga as Uncommon Value
Filed under: Technology, Media, Earnings, Value Investing
Zynga Inc. (NASDAQ: ZNGA) is no longer a very loved company. The social game maker has lost its favorable outlook largely as it and Facebook Inc. (NASDAQ: FB) try to distance themselves from each other. So when you see an analyst upgrading the stock, it may raise some eyebrows.
Bank of America/Merrill Lynch raised its rating to Buy from Neutral, citing Zynga’s asset value and mobile stabilization. Its price target was raised to $3.40 from $2.70.
The firm does caution:
While our upgrade could be early with bookings expected to decline quarter over quarter in the first quarter, and our below-Street 2013 estimates, we are upgrading Zynga to Buy due to the following: 1) valuation now reflects downside risk to bookings with $2.20/share in cash over assets, a $200 million per year poker business, and $150 to $200 million mobile business likely supporting the stock; 2) ZNGA‘s mobile trends may have stabilized (per comScore user data), and for PC there is option value for an inflection in players in 2013 driven by new categories (gambling and core); 3) recent 60-day performance of ANGI, FB, GRPN, and P suggest investors’ risk tolerance with developing business models has increased; and, 4) FB‘s 10-K disclosure suggests $15 to $25 million upside to fourth quarter guidance and our prior bookings estimate.
BofA also noted that social gaming trends remain weak and bookings may not bottom in 2013.
While BofA has raised its fourth-quarter estimates, the firm is still below Wall St.’s consensus in 2013. The firm is raising its 2013 total bookings estimate to $895 million from $825 million, EBITDA to $20 million from -$45 million, and adjusted “LPS” to $0.09 from $0.15. Its revenue projection for 2013 is $980 million, versus $1.06 billion.
Filed under: 24/7 Wall St. Wire, Analyst Calls, Internet, Media, Value Investing, Video Games Tagged: FB, ZNGA
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Source: FULL ARTICLE at DailyFinance