Zynga Target Price Up at Piper Sandler After Report Beats

Game maker Zynga's results beat expectations, and CEO Gibeau is bullish on the future. Piper Sandler raised its target price.
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Zynga (ZNGA) - Get Report shares jumped after the game producer reported stronger-than-expected fourth-quarter results and Piper Sandler raised its target price on the stock. 

The San Francisco company reported a loss of $3.5 million, or break-even per share, compared with net income of $559,000, or break-even, in the year-earlier period. 

Analysts forecast a loss of 3 cents per share for the latest quarter, according to FactSet.

Adjusted revenue totaled $433 million in the fourth quarter, compared to analysts’ prediction of $418 million for the latest period, according to Bloomberg.

Piper Sandler lifted its price target for Zynga shares to $8 from $7.25, according to Dow Jones.

"Our strong fourth-quarter performance capped off an outstanding year for Zynga,” CEO Frank Gibeau said in a statement. “Live services are the foundation of our multiyear growth strategy and were the primary driver of our highest-ever annual revenue and bookings.

"Our momentum in 2019 has positioned us for continued growth in 2020,” he said. “We expect to increase our live services portfolio from five to six forever franchises and have the potential to launch new titles in the second half of this year.”

In addition, there will be “more opportunities to acquire talented teams and franchises around the globe," Gibeau said.

Zynga forecast adjusted earnings of $350 million for 2020, compared with analysts’ estimate of $345.5 million, according to Bloomberg.

And the company projects adjusted revenue of $1.75 billion for this year, compared with analysts’ expectation of $1.74 billion.

At last check Zynga shares traded at $6.65, up 12%.