Recent Cost Cutting Measures Could Lead Zynga To Profitability

In view of these results, we have raised our price estimate for Zynga from $2.30 to $3.04. In our view, the recent steps towards operational simplicity and efficiency could drive the company?s EBITDA margin to over-30% in the long-run, instead of our previous estimate of over-20%. In addition, we expect Zynga?s business to recover in the future on the back of new game launches and solid growth on the mobile platform.