Goldman Sachs Targets 20% Upside for Zynga Stock

The internet gaming stock reports earnings next Wednesday

Managing Editor
Jan 30, 2019 at 9:54 AM
facebook twitter linkedin


The shares of Zynga Inc (NASDAQ:ZNGA) are up 1.8% to trade at $4.50 this morning, after Goldman Sachs initiated coverage on the game developer with a "buy" rating and $5.30 price target. This comes as Zynga prepares to report its fourth-quarter earnings next Wednesday, Feb. 6. 

Goldman's price target represents 20% upside from ZNGA's closing perch yesterday of $4.42. The shares have started 2019 off strong, adding 14.5% and relying on support from their ascending 10-day moving average. As such, the security is in striking distance of its June 7 four-year high of $4.57. 

There is certainly room for more bullish analyst attention. While nine of the 13 brokerages in coverage of ZNGA rate it a "buy" or better, the stock's consensus 12-month price target of $4.76 is a 5.8% premium to current levels.

Shorts have continued to pile on, and a capitulation of these bearish bets could also power ZNGA higher. Short interest increased by 19% in the last two reporting periods to 70.21 million shares -- the most in nearly four years. This represents a healthy 9% of the stock's total available float, and more than a week's worth of buying power, at its average daily trading volume.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners