Why Zynga (ZNGA) Stock Is Gaining Today

NEW YORK (TheStreet) -- Zynga (ZNGA) is climbing after receiving a vote of confidence from Wedbush. The firm added it to its "Best Ideas List," a compilation of stocks which Wedbush has the highest conviction will outperform over the next year. 

Wedbush also reiterated an "outperform" rating and gave a 12-month price target of $7. 

The firm's optimism stems from Zynga's mobile-first strategy which allows players access to its most popular games such as FarmVille, Zynga Poker and Words With Friends anywhere they are. 

In the report, analysts Michael Pachter, Nick McKay and Nick Citrin wrote, "Zynga appears determined to address the "play anywhere" free-to-play market by leading with mobile games and ensuring that its games are available cross-platform."

Wedbush also said it expects Zynga to profitably grow the business to fiscal 2012 levels. 

"We expect to see regular increases in guidance as the company continues to execute on its
strategy. We believe that over 30% contribution margins are achievable over the long run, as Zynga sees revenues grow beyond the $1 billion level again," the analysts wrote. 

Fiscal 2013 revenue dropped to just over $716.2 million, well below $1.15 billion a year earlier. 

By late morning Monday, shares had climbed 0.94% to $4.24. 

Must Read: Warren Buffett's 10 Favorite Growth Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.


Separately, TheStreet Ratings team rates ZYNGA INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

If you liked this article you might like

IPOs That Should Be on Your Radar

Now You're Hearing Apple Roar: Market Recon

Apple Rally Could Boost Dow to 22,000 - 5 Things You Must Know Before the Market Opens

Tesla and Apple Better Deliver Big-Time or Look Out Below -- Week Ahead

Midday Report: SiriusXM Makes Pandora Investment; U.S. Stocks at New Records