Zynga Inc. (NASDAQ: ZNGA) seems to be back in the news now that King Digital Entertainment PLC (NYSE: KING) has come public. A brokerage report from Wedbush would likely be causing more interest if the market was not suffering its selling pressure from last week’s peak.
Wedbush reiterated its Buy rating on Zynga, but what stands out is that the mobile and social game maker’s stock was added to the Best Idea List of picks at the firm. More importantly, the $7 price target implies upside of close to 66%.
Trading at $4.21, it has a 52-week range of $2.50 to $5.89, and the consensus price target from Thomson Reuters is $4.32. Note that $7.00 is the highest analyst price target on Wall Street.
A Wedbush analyst was on CNBC and his video presentation can be seen here. As of 1:00 p.m. EST, Zynga’s trading volume was already 38 million shares — about 4 million shares higher than a full average day’s trading volume.
King still has no real analyst coverage from its underwriting syndicate yet, but its valuation of $5.7 billion is currently about $2 billion higher than that of Zynga. Both stocks are trading below their IPO prices.
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