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Zynga shares rise on analyst upgrade

February 4, 2014

The Associated Press

Shares of Zynga Inc. rose Tuesday to their highest level 18 months after a UBS analyst raised his investment rating on the online game maker's stock, saying that a recent acquisition will help the company grow. Zynga , which makes games such as "FarmVille" and "CityVille," said last week that it was buying NaturalMotion, a mobile game maker, for $527 million . UBS analyst Eric Sheridan said the acquisition will strengthen the company's mobile games business and NaturalMotion's successful titles, " CSR Racing " and "Clumsy Ninja," are a good fit for Zynga's business. Sheridan upgraded Zynga to a "Buy" rating from "Neutral" and raised the stock's price target to $6 from $4 . Sheridan also said that Zynga is stabilizing under its new CEO Don Mattrick , who joined the company in July from Microsoft Inc.'s Xbox unit. Zynga shares rose 3 cents to $4.51 in afternoon trading Tuesday after rising as high as $4.97 earlier in the day. That was its highest level since July 2012 , according to FactSet. Its shares have lost more than half their value since their initial public offering price of $11 in December 2011 .


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Source: Associated Press


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