DeZwarteRidder schreef op 9 juni 2014 18:27:
Disappointing Zynga primes for a comeback
Chris Morris | @MorrisatLArge
17 Mins AgoCNBC.com
Zynga, to many investors, is a cautionary tale.
In the months preceding its 2011 IPO, some analysts estimated the company to have a market cap of $15 billion to $20 billion. At the last minute, that was dropped to $7 billion. And the company's shares quickly took a dive after trading commenced. Today, the company's market cap sits at less than $3 billion.
Many investors don't pay a lot of attention to Zynga these days, but maybe they should. Bolstered by new leadership and a turnaround plan that seems to be working, the company is impressing analysts, who say it could be on the verge of a comeback.
And it all hinges, they say, on new CEO Don Mattrick.
"Don has laid the foundation for a comeback," says John Taylor, managing director of Arcadia Investment Corp. "Obviously for that to happen, you need games to bring the audience back, but what he has done is change the culture there. He has brought in fresh people and gotten rid of a lot of the toxins that were at Zynga. And he has focused people on achievable goals."
Bookings in the first quarter came in at $161 million, exceeding expectations, and the guidance for Q2 was also higher than expected. And some analysts expect the stock price to virtually double in the next year.
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Now that Zynga appears to be executing on Mr. Mattrick's plan, we expect its shares to trade up over the next few months, and expect them to hit our [$7 per share] price target within 12 months if Zynga continues to execute," says Michael Pachter, managing director of equity research at Wedbush Securities.
Zynga nu ca 3 USD.
www.cnbc.com/id/101743311?__source=ya...