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Author: newsreporter Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 51  
Subject: ‘Unleashed’ Event Date: 6/26/2012 1:56 AM
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Street Heartened by Tomorrow’s ‘Unleashed’ Event
http://blogs.barrons.com/techtraderdaily/2012/06/25/znga-str...


Several analysts weighed in with thoughts on online games purveyor Zynga (ZNGA) today, anticipating the company’s unveiling tomorrow of a raft of games and services during a scheduled event at its headquarters called “Unleashed.”

R.W. Baird‘s Colin Sebastian reiterated an Outperform rating and a $13 price target, writing that the games portfolio is becoming broader:

We believe Zynga’s pipeline includes sequels to existing key franchises (e.g., Farmville), as well as a broader assortment of new titles, including mid-core games as well as games for smart devices.

Sebastian also thinks the company’s Web site, as an alternative to Facebook (FB) is in the early stages of becoming “an important distribution and retention tool”:

With a comparatively uncluttered interface vs. games on Facebook, Zynga.com provides its most active users with a better gaming experience. Depending on the level of service Zynga ultimately provides, we note the potential for third-party game developers to help fuel momentum on the site in exchange for access to Zynga’s user base and data mining abilities.

Piper Jaffray’s Michael Olson reiterated an Overweight rating on the shares, and a $13 price target, although he thinks that tomorrow’s event will “leave many of the questions that have been impacting the stock unanswered.”

Those issues include a “lack of investor excitement for the current portfolio and future pipeline,” the company’s negative free cash flow, which is burdened by acquisitions and real-estate investments, Zynga’s dependence on Facebook, and fears of Q2's results missing estimates. For discussion of some of these concerns, investors will have to wait until the company’s Q2 earnings release in July, he thinks.
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