Morgan Stanley analyst Brian Nowak said he came away from Zynga's Q1 report and call with increased confidence that core live services can drive growth through to the company's new game launches in the second half of the year. The analyst, who said he thinks the company is taking shareholder-friendly steps to optimize its assets, believes Zynga remains in talks about a further sale leaseback of square footage in its headquarters. He raised his price target on the shares to $6.80 from $5.75 following the "impressive" Q1 results and keeps an Overweight rating on Zynga shares.