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A Top Investment Company Announces the Launch of a Mobile Gaming Stock that Will Score Big for Investors

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A Top Investment Company Announces the Launch of a Mobile Gaming Stock that Will Score Big for Investors

October 09
01:54 2020
A Top Investment Company Announces the Launch of a Mobile Gaming Stock that Will Score Big for Investors

October 8, 2020 – A high-ranked Investment Company “Blossomhill Investment Limited (BHI)” announces the launch of a mobile gaming stock which is the fastest-growing segment in the videogames industry and will score big for investors.

In 2019, the global mobile gaming market grew to $68.5 billion. This growth was influenced by several underlying factors, making it continue soaring this year. According to market experts, the global mobile gaming market will hit $76.7 billion, representing a 12% market growth.

Zynga (NASDAQ: ZNGA) has become the largest mobile video game in the U.S, climbing to No. 1 in terms of market share, on both Apple’s (NASDAQ: AAPL) App Store and Alphabet’s (NASDAQ: GOOGL) (NASDAQ: GOOG) Google Play store, according to Blossomhill Investment Limited analyst Jason Fong. Zynga has completed the acquisition of Istanbul-based hyper-casual game developer Under the terms of the deal, Zynga purchased 80% of the company for approximately $180 million in cash. The mobile game developer Zynga will acquire the remaining 20% of Rollic with additional payments over the next three-year period.

Zynga’s CEO Frank Gibeau said “Rollic brings Zynga into the world of hyper-casual, which is one of the most exciting and fastest-growing mobile gaming categories. Rollic’s large and diversified audience base will also be valuable for Zynga as the mobile games and advertising landscape continues to grow. With the Rollic acquisition, Zynga (ZNGA) will debut in the fast-growing hyper-casual market.

On Oct.7, Blossomhill Investment Limited analyst Jason Fong maintained a Strong – Buy rating on the stock and a price target of $14.35 (49.94% upside potential). The analyst noted that Zynga has driven significant margin expansion since 2016, and that he expects margins in 2021 to outperform the Street consensus. The analyst believes that Zynga is undervalued at current levels.

The company has a leadership position in the mobile games space, which is the fastest-growing segment in the videogames industry, Fong said.

Fong also mentioned that Zynga’s growth going ahead is likely to be propelled by a combination of three factors: * Organic growth; * Integration of its recent acquisition of Peak Games and the pending deal for Rollic Games; * Steady margin expansion.

“In addition, with its strong FCF conversion and a sizable amount of debt capacity, Zynga has the ability to remain very active with M&A. Plus, we see call option value on management’s ability to expand into new segments and platforms within mobile gaming and increase its international presence,”

Wall Street will be looking for positivity from ZNGA as it approaches its next earnings report date. Meanwhile, our latest consensus estimate is calling for revenue of $626.37 million, up 58.65% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.36 per share and revenue of $2.22 billion. These totals would mark changes of +3500% and +41.84%, respectively, from last year.

Blossomhill Investment Limited is an independent investment advisory and wealth management company. We administer equity, fixed-income, balanced, growth, and socially responsible investment portfolios. For more information about Blossomhill Investment Limited (BHI) and the services they offer, please feel free to visit https://www.bhidirect.com/ or call their customer hotline number +852 3002 4438

Media Contact
Company Name: Blossomhill Investment Limited (BHI)
Contact Person: Tommy Ang
Email: Send Email
Phone: +852 3002 4438
Address:Office Tower, Convention Plaza, 1 Harbour Road
City: Wanchai
State: Hong Kong
Country: HongKong
Website: https://www.bhidirect.com/

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