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Fly News Breaks for August 22, 2018
DIS, ZNGA
Aug 22, 2018 | 05:23 EDT
Baird analyst Colin Sebastian believes the Star Wars license announced last night adds some visibility to Zynga's (ZNGA) out-year growth targets. The new Disney (DIS) license is a positive development for Zynga for the longer-term given the popularity of the Star Wars franchise, Sebastian tells investors in a research note. The analyst believes the deal the adds the potential for incremental live services revenues and further diversifies Zynga's game portfolio. That said, he does not expect a material contribution from new titles until 2020. As such, Sebastian keeps a Neutral rating on Zynga shares with a $4 price target. The stock in premarket trading is up 7.5%, or 28c, to $4.02.