In a research report issued today, Wedbush analyst Michael Pachter initiated coverage on shares of Glu Mobile Inc. (NASDAQ:GLUU), with a Neutral rating and price target of $3.30, which implies an upside of 9% from current levels.

Pachter wrote, “Glu currently trades at an enterprise value / consensus revenue multiple of approximately 0.75x, suggesting that there could be substantial upside should any of its new celebrity-themed games prove to be successful. Until we have greater visibility into the success of its celebrity-themed games, we advise investors to remain on the sidelines.”

“Many investors will view Glu as a one-hit wonder until proven otherwise. 2014 release Kim Kardashian: Hollywood generated 31% of total non-GAAP revenue in its release year, and 58% of the $128.4 million y-o-y top-line increase from 2013 to 2014. Glu has already launched a number of high-profile games in 2015, but hasn’t been able to translate them into big revenue contributors, at least not yet, raising questions about whether its key releases in Q4:15 or FY:16 will resonate with paying consumers,” the analyst added.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Michael Pachter has a total average return of -5.2% and a 38.0% success rate. Pachter is ranked #3500 out of 3645 analysts.

Out of the 8 analysts polled by TipRanks, 5 rate Glu Mobile stock a Buy, while 3 rate the stock a Hold. With a return potential of 127%, the stock’s consensus target price stands at $6.88.