NEW YORK (TheStreet) -- Zynga (ZNGA) rose Thursday after Wedbush Securities said in a research note that the social gaming company should meet or exceed guidance when it reports first-quarter earnings on April 23.
"Our Q1 estimates are for bookings of $150 million and earnings per share of $0, versus consensus of $148 million and 1 cent, and guidance of $138 million to $148 million and 1 cent," the firm said in a note. "On April 10, Zynga announced the appointment of new CFO David Lee, and CEO Don Mattrick said that 'the year is off to a solid start.' We believe that if Q1 results had fallen short of expectations, Zynga would have preannounced instead. Also, we believe that management has an 'under-promise and over-deliver' approach to guidance, strengthening our belief that it will meet or exceed expectations."
Wedbush also expects Zynga to issue second-quarter guidance on the high end of expectations and to reiterate its fiscal year 2014 guidance.
The stock was up 3.4% to $4.25 at 1:27 p.m. on Thursday.
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:
"We rate ZYNGA INC (ZNGA) a SELL. This is driven by multiple weaknesses, 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."