Zynga Just Got A Major Upgrade From Morgan Stanley

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.

Sofia Vida

Sofia has been writing for major news outlets for over 15 years. In her spare time she enjoys hiking, walking her dogs, and going to concerts.

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