EA - Zynga +3% as J.P. Morgan shuffle lifts it to overweight; EA SCPL cut to Neutral
Zynga (ZNGA) is up another 3% as a shuffle in videogame ratings at J.P. Morgan has it upgrading the shares to Overweight. That includes starting Take-Two Interactive Software (TTWO +1%) at Neutral, and cutting Electronic Arts (EA +1.4%) and SciPlay (SCPL -3.2%) to Neutral. Zynga joins Activision Blizzard (ATVI +0.7%) at Overweight in the firm's estimation. "In the context of more limited 2021 organic growth, we believe stock performance next year will be driven by execution across core franchises and investor enthusiasm for the new game pipeline – factors that we believe favor ATVI and ZNGA," Alexia Quadrani and team write. Both companies also sport "significant long-term opportunities that we do not see as fully reflected in current off-peak multiples." Overall, the firm says publishers are facing tough comps in 2021 with consumers set to reallocate at least some of their time and budget to areas that were closed for
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Zynga +3% as J.P. Morgan shuffle lifts it to overweight; EA, SCPL cut to Neutral