Piper Jaffray Starts King Digital Entertainment (KING) at Neutral

Piper Jaffray initiates coverage on King Digital Entertainment (NYSE: KING) with a Neutral rating and a price target of $19.00. Despite the neutral rating the analyst is positive on the stock but would wait for a further pullback to get more constructive.

Analyst Michael Olson comments, "Despite our Neutral rating on the stock, our bias on the King story is positive based on 1) the company’s recent strong execution toward delivering improved diversification in the game portfolio and 2) a massive total addressable market of mobile users that presents a significant revenue opportunity during the next 10 years. We recognize that many investors will take a wait-and-see approach to the unpredictable trajectory of Candy Crush Saga, which we view as the reasonable and risk-averse choice.Below we walk through some of the positives and negatives of the King story and stock. We would become more constructive on the stock with better diversification away from Candy Crush or after a further pullback."

For an analyst ratings summary and ratings history on King Digital Entertainment click here. For more ratings news on King Digital Entertainment click here.

Shares of King Digital Entertainment closed at $17.56 yesterday.

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