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.
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