Active Stock Alerts: Zynga, Sina, Activision Blizzard, Chipotle Mexican Grill, Shoe Carnival March 22nd
Zynga (NASDAQ:ZNGA): After Zynga agreed to acquire Draw Something creator OMGPOP, Sterne Agee thinks that the deal could be expensive if the acquisition price is close to the $150M-$250M level, as some have speculated. The firm believes it’s too early to tell if Zynga can monetize Draw Something beyond the initial 99c app fee, and it reiterates an Underperform rating on Zynga.
Sina Corp. (NASDAQ:SINA): Maxim believes SINA’s regulatory risk is not resolved with the passing of the March 16 deadline requiring Weibo users to register real names. Maxim notes that days after the deadline, Weibo’s user base and activities seemed to not be significantly affected by the new regulation, despite only 16.3% of users registering real names, according to press reports. The firm sees downside risk in SINA shares when the government decides to get more serious on its regulation and reiterates a Sell rating on the stock with a $51 price target.
Activision Blizzard, Inc. (NASDAQ:ATVI): Cowen said the video game publishers could benefit from tailwinds over the next 18 months citing seasonal share price performance, the beginning of the next console cycle including the new Xbox next year, and low historical valuation. Cowen’s favorite name is Take-Two Interactive (NASDAQ:TTWO), and also rates Electronic Arts (NASDAQ:EA) and Activision Blizzard (NASDAQ:ATVI) Outperform.
Chipotle Mexican Grill, Inc. (NYSE:CMG): Bernstein believes Chipotle can drive comps without a material marketing spend through menu news and its loyalty program. The firm reiterates its Outperform rating given strong sustained comps and revenue growth.
Shoe Carnival Inc. (NASDAQ:SCVL): Susquehanna raised its price target on Shoe Carnival following Q4 results. The firm cited expectations for a strong finish to 2012 due to favorable Q4 weather comparisons and a 53rd retail week. Shares are Positive rated.
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