This morning, analysts at Bank of America, Deutsche Bank, BMO Capital Markets, Pacific Crest, RBC Capital Markets, Barclays, Cowen and JPMorgan all initiated coverage of the company behind the popular Candy Crush game with a buy rating or equivalent. Analysts at Piper Jaffray and Sterne Agee came out with a neutral rating, according to the Analyst Ratings Network. Price targets range from $21 per share to $31 per share.
$KING wtf, 10 banks upgrated this morning to strong buy PT 21-30$..!!!-- grigorios papaioannou (@gregpap) May. 5 at 04:47 AM
The stock opened nearly 2% higher Monday and kept climbing. The bullish consensus was a real coup for early King investors, who have watched the stock tumble as much as 25% below its March IPO price of $22.50 per share. The stock now trades around $17.56.
When King debuted on the NYSE, investors said bankers did King a disservice by slapping such a high price on shares. The $7 billion valuation implied by King's IPO price would have made the company -- known for one hit game, Candy Crush Saga --worth just 20% less than gaming giant EA (EA).
But King's haircut has made the stock more attractive. It has a $5.53 billion market cap and trades at 10.2 times trailing 12-month earnings. King sentiment is 60% bullish, according to StockTwits' analytics.
King will report its first-quarter results on Wednesday, May 7, before the open. Analysts said that, although Candy Crush may have peaked, the company still makes a ton of money off of the game, which is free to start and charges for extra lives. Another King game, Farm Heroes Saga, is also gaining traction.
$KING Stop this "One trick pony" sentiment. Candy Crush has plenty of room to run. Next 2 qtrs are guaranteed. Money, money...and more money-- Michael B (@Mbrillo1) May. 5 at 10:05 AM