ZNGA Eyes Nearly 9-Year High on Upbeat 2021 Forecast

No fewer than seven analysts issued price-target hikes

Lillian Currens

Digital Content Manager

Feb 11, 2021 at 9:23 AM

ZNGA

The shares of Zynga Inc (NASDAQ:ZNGA) are up 4.6% at $11.67 in early morning trading, after the mobile gaming company shared an upbeat 2021 net bookings outlook, which topped estimates. The company cited its upcoming "FarmVille" game and continued strength for its "Harry Potter: Puzzles & Spells" title, among others. In response, no fewer than nine analysts issued price-target hikes, the highest coming from Wedbush to $15.

This surge puts ZNGA on track to open at its highest level in nearly nine years, as well as its biggest one-day pop since December. This will mark the equity's fourth consecutive intraday high. Year-over-year, ZNGA is up over 66%.

Coming into today, the brokerage bunch was already resoundingly optimistic. Of the 17 in coverage, 15 called ZNGA a "buy" or better. The 12-month consensus price target of $12.25, meanwhile, stood at a 5.3% premium to last night's close.

Option traders have also been overwhelmingly bullish. In fact, 20 calls have been picked up for every put during the past 10 weeks at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 93% of readings from the past 12 months, suggesting this extreme penchant for calls is unusual.

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