Shares of online gaming developer and provider Zynga (ZNGA) - Get Report got a boost on Tuesday after an analyst at Wedbush Securities added the company to the firm's "best ideas" list, noting he sees "significant upside" for the company's stock ahead of a slate of new game releases.
In a note to clients, Wedbush analyst Michael Pachter noted key gaming titles including "Empires & Puzzles" and "Merge Dragons!" along with three new releases later this year "... have the potential to drive significant upside to the Street's expectations through 2021."
"As such, we expect the shares to trade closer to our price target over the remainder of the year," he said. Pachter currently has a one-year price target of $9 on the stock alongside an outperform rating.
Zynga in July posted a second-quarter loss of $55 million, or 6 cents a share, vs. a loss of $128.8 million, or 14 cents a share, in the comparable year-ago period. The results beat FactSet consensus forecasts by a penny. The company produces online and mobile games including "Game of Thrones" slots, "CSR 2 Racing" and "Tiny Royale."
Shares of Zynga were up 3.75% at $5.81 in early trading on Tuesday.
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