RBC Capital Cuts Price Target on King Digital Entertainment (KING) Following 2Q15 Earnings

RBC Capital maintained an Outperform rating on King Digital Entertainment (NYSE: KING), and cut the price target to $15.00 (from $17.00), following its 2Q15 earnings report. Revenue of $496MM came in above Street estimates at $482MM. Gross Bookings of $529MM came in ahead of Street estimates of $513MM and guidance of $490-520MM despite FX impacts. KING guided Q3 Bookings to a range of $460-485MM.

Analyst Mark Mahaney commented, "King reported a beat and lower Q2, with key traffic metrics deteriorating and with a lack of diversification away from its core Candy Crush franchise. Bookings guidance for Q3/Q4 implies material Y/Y declines, though ’15 EBITDA outlook maintained. We are lowering estimates and our PT to $15 and maintaining our Sector Perform."

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 $15.20 yesterday.

You May Also Be Interested In

• Natera (NTRA) PT Raised to $270 at BTIG
• Constellation Brands (STZ) PT Lowered to $157 at Jefferies
• ACM Research, Inc. (ACMR) PT Raised to $130 at Morgan Stanley