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Zynga Jumps on Quarterly Results; Analysts Positive on Company's Future

Zynga's price target was raised to a Wall Street high of $15 per share by Wedbush.
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Shares of video game maker Zynga  (ZNGA) - Get Zynga Inc. Report jumped more than 7% Thursday after analysts were mostly positive on the company's latest earnings release despite a weak EBITDA forecast for 2021. 

Bank of America raised its outlook on the company while Wedbush, Piper Sandler and Truist Securities all raised their price targets on the San Francisco-based company, which released its fourth-quarter results after the close on Wednesday. 

Here is what Wall Street is saying about Zynga Thursday:

Bank of America's Ryan Gee upgraded the stock to neutral from underperform while raising its price target to $12 from $9.50 per share. The firm is positive on the company's growth and margin potential. 

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Wedbush rates Zynga outperform while raising its price target to a Wall Street high $15 from $14.75 per share. The company's fourth quarter topped expectations and showed solid execution in live services and increased advertiser interest, according to Michael Pachter. 

Piper Sandler's Yung Kim said that “with a string of new titles poised to launch and a restocked war chest for further acquisitions, we view the [2021] guidance as conservative." The firm rates Zynga overweight while raising its price target to $13.50 from $12 per share. 

Stifel analyst Drew Crum rates the company with a buy and $13 price target while noting that Zynga discussed several initiatives it is pursuing, including hyper-casual games, cross platform technologies and new ad technologies. 

Zynga reported net bookings of $699 million in the fourth quarter, topping analyst estimates of $677.3 million. 

The "Words With Friends" game maker also reported a doubling of monthly active users to 134 million as people spent more time on their phones amid the coronavirus pandemic and lockdown.