Northland Securities analyst Darren Aftahi weighed in with some insights on Glu Mobile Inc. (NASDAQ :GLUU) with a mid-quarter update on the stock. The analyst maintained an Outperform rating on GLUU with a price target of $9.50. Shares of Glu Mobile closed yesterday at $6.50, down $0.05, or 0.76%.
Aftahi observed, “Through the end of May, our proprietary analysis estimates ~$59.1M in non-GAAP revenue for 2Q, providing potential upside to management’s guidance of $50M-$52M and our estimate of $51.3M (and consensus of $51.5M). Moreover, Glu game rankings have seen a relative step up in June vs. averages in April and May.”
“However, the more important point, we believe, is with Glu’s catalog on a ~$60M+/- Q revenue contribution run rate (1H15), this implies it could account for ~$240M+/- of its current $262- $287M sales guidance. As such, with a solid lineup of 11 games in 2H15, we believe “incremental” levels (above catalog baseline levels) of revenue to be achieved by its current guidance are conservative.”, the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Darren Aftahi has a total average return of 4.4% and a 60.4% success rate. Aftahi has a 41.2% average return when recommending GLUU, and is ranked #1304 out of 3624 analysts.
All 7 analysts polled by TipRanks rate GLUU a Buy. With a upside potential of 40.46%, the stock’s consensus target price stands at $9.13.