Roth Capital analyst Darren Aftahi weighs in on Glu Mobile Inc. (NASDAQ:GLUU) ahead of the company’s second-quarter earnings report on Tuesday, August 2. The analyst reiterates a Neutral rating on the stock, with a price target of $2.50.
The analyst believes that there is an approximate 6% upside to his estimates, and notes that his proprietary analysis tracks game rankings for GLUU in the U.S and China, and seeks to compare GLUU’s current rankings to its previous quarter rankings. Though an upside exists, the analyst concedes, “many of GLUU’s top games have continued to deteriorate in rankings, and the absence of highly successful celebrity launches leave us cautious on the future of GLUU’s celebrity platform. We remain on the sidelines as we see limited near- term catalysts.”
The analyst believes that Glu’s game portfolio is continuing to weaken, however, the company’s game, Tap Sports Baseball beams a shining light through the grey. According to the analyst, “Tap Sports Baseball 2016, however, has significantly outperformed our expectations, consistently ranking in the high teens to low 20’s (U.S. iPhone) throughout 2Q, and offset some of GLUU’s deteriorating portfolio.”
As usual, we recommend taking analyst notes with a grain of salt. They are often successful in moving the stock price, but you always need to take things into perspective. According to TipRanks, Darren Aftahi is ranked #2,639 of 4,083 analysts. He maintains a success rate of 45% and realizes an average return of 0%.
TipRanks shows that 100% of analysts maintaining a Hold rating on the stock. The consensus target price for GLUU is $2.62, marking a 9.62% upside from current prices.