Truist sees upbeat to in-line Q3 bookings for mobile game developers

SciPlay

08/10/2020 18:41

** Truist Securities raises PT on mobile-game makers Zynga
Inc  ZNGA.O  by $1 to $11 and Sciplay Corp  SCPL.O  by $2 to $19
    ** Expects ZNGA to post in-line Q3 bookings and Q4 slightly
above expectations; new PT implies ~15% upside to stock's last
close 
    ** While still early, we think (Zynga's) "Harry Potter" is
tracking to be a forever franchise - Truist
    ** Zynga launched its mobile game "Harry Potter: Puzzles &
Spells" in September, following a licensing deal with Warner
Bros's videogame unit in 2018
    ** Expects SCPL to beat Q3 bookings est; says third-party
mobile app data reads positive for SCPL and is more mixed for
ZNGA
    ** Shares of ZNGA down ~2% and SCPL down ~6% 
    ** Expects peer mobile game developer Glu Mobile Inc
 GLUU.O  to post Q3 bookings slightly above est
    ** Current avg rating on ZNGA, SCPL and GLUU is "buy"; their
median PT is $12, $18 and $11, respectively - Refinitiv data
    ** YTD, ZNGA is up ~53%, SCPL up ~37% and GLUU up ~28%

 (Reporting by Ayanti Bera in Bengaluru)
 ((Ayanti.Bera@thomsonreuters.com; 646 223 8780 - 3401;))