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Fly News Breaks for October 10, 2018
Oct 10, 2018 | 07:49 EDT
Zynga closed up 12% yesterday on a Bloomberg report that the company is drawing preliminary takeover interest from other video game developers, Jefferies analyst Timothy O'Shea tells investors in a research note. Zynga is an attractive asset with a portfolio of valuable intellectual property plus significant development, publishing and analytics assets, the analyst contends. He believes management has successfully pivoted the company towards mobile gaming and recurring revenue. And with 20% EBITDA margin "in its sights," the timing of takeover interest "makes sense," writes O'Shea. He keeps a Buy rating on Zynga with a $5.25 price target.