Morgan Stanley analyst John Egbert upgraded the social and mobile game publisher to "equal-weight" from "underweight." The analyst said the upgrade it largely due to the "long await" launch of FarmVille 2: Country Escape. The mobile game recently soft launched in Canada and Australia on the iPhone, and Egbert believes it could be a Top 20 grossing app when it comes to the U.S. App Store.
Looking at the company's numbers, the Egbert wrote, ""We think Zynga will reaffirm 2014E guidance and likely exit CQ4:14E at 50%+ Y/Y organic bookings growth."
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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:
"We rate ZYNGA INC (ZNGA) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: