Shares of mobile game maker Zynga jumped to a three- year high on Friday after the company received an upgrade from Morgan Stanely.
Shares were up nearly 5% Friday morning after analysts at Morgan Stanley gave the stock a $4.50 price target and lifted it from “equal weight” to “overweight.”
Morgan Stanely analyst Brian Nowak’s price target is 20% above current levels, from $3.00. Nowak cited that he is “bullish” on Zynga’s live services business, “as it is driving increased engagement and monetization.” According to Nowak, in-game innovation has sparked the beginning of a multi-year turnaround for the company.
Shares hit their highest level since May 13th of 2014 on Friday and the stock is up 46% YTD.
Nowak also said that while Zynga shares have had a strong year so far, the firm doesn’t “think we’ve missed the opportunity, but rather this is the beginning of a multi-year turnaround and stronger business model.”
Disclaimer: We have no position in Zynga Inc. (NASDAQ: ZNGA) and have not been compensated for this article.