NEW YORK (TheStreet) -- Shares of King Digital Entertainment (KING) are up 2.45% to $17.99 in pre-market trading on Monday after Pacific Crest Securities initiated coverage on the creator of Candy Crush Saga with an "outperform" rating and set a $21 price target on the stock.
The firm said it thinks "King could beat expectations in the near term."
Long term, Pacific Crest is concerned the company will not be able to create another game as popular as Candy Crush, but it did say, "King is the cheapest videogame stock, so we think the near-term risk/reward has turned favorable."
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