UPDATE: Zynga (ZNGA) Risk-Reward Unattractive, Morgan Stanley Cuts to Underweight

7:42 AM EDT)

Morgan Stanley downgraded Zynga (NASDAQ: ZNGA) from Equalweight to Underweight with a price target of $2.60 (from $3.00) Analyst Scott Devitt sees unattractive risk/reward and thinks the company's transition to mobile will take longer and cut deeper than anticipated. He also thinks Zynga is being surpassed by competitors in web gaming.

Additionally, Zynga might not see the benefit or real money gaming until 2014 or 2015. Devitt would not be surprised to see more job cuts as Zynga makes the transition.

For an analyst ratings summary and ratings history on Zynga click here. For more ratings news on Zynga click here. Shares of Zynga closed at $2.86 yesterday, with a 52 week range of $2.09-$6.35.

Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW *NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here begin ad tag (tile=12) -- End ad tag --

Sign Up

Get the InvestingChannel
Free e-Letter Today

Learn More

Independent market opinion, analysis and ideas - delivered every business day

Premium market opinions, analysis, and ideas - delivered every business day

Editor's Picks