Why This Analyst Thinks Zynga Is A Good Deal For Take-Two Interactive – Take-Two Interactive Softwar (TTWO)

Take-Two Interactive Software, Inc’s (NASDAQ:TTWO) intention to acquire FarmVille developer Zynga Inc (NASDAQ:ZNGA) is likely to “help smooth earnings variability while offering compelling synergy opportunities,” according to BMO Capital Markets.

The Take-Two Interactive Software Analyst: Gerrick Johnson upgraded the rating for Take-Two Interactive Software from Market Perform to Outperform, while keeping the price target unchanged at $180.

The Take-Two Interactive Software Thesis: Although the company owns some iconic video games, it has not been able to leverage them onto mobile, and the Zynga acquisition “provides the capabilities to do so,” Johnson said in the upgrade note.

“We think this is a good deal for TTWO and view positively the opportunity to increase scale in the rapidly growing mobile games business,” the analyst wrote. “We see strong potential synergy opportunities,” he added.

Johnson further mentioned that the ongoing strength of Grand Theft Auto has been impressive and this “continues to drive stronger than expected engagement.”

TTWO Price Action: Shares of Take-Two Interactive Software had risen by 6.08% to $157.44 at the time of publication Wednesday.

Related Link: Steve Jobs Told Zynga In-App Purchases Were ‘Stupid.’ 15 Years Later, The ‘FarmVille’ Creator Lands Biggest Video Game Deal Ever

Photo: Photo by Peter Tracy, Courtesy Zynga

Source link

Copyright © 2022 Billionaire Club Co LLC. All rights reserved

Loading the chat ...