Last week, Glu Mobile Inc. (NASDAQ:GLUU) unveiled “Design Home,” a gaming platform that “brings the best of the design world to [gamers’] fingertips through interactive daily design challenges.” GLUU said “Design Home” allows users to create distinct interior design spaces in 3D and embrace new interactive design challenges daily.”
In addition, Glu Mobile CEO Nicholas Earl has just reported open market purchase of 100,000 GLUU shares at $2.09 per share. Earl owned 184,638 shares of co’s common stock at end of the transaction
In light of these events, Roth Capital analyst Darren Aftahi raised his price target to $2.00 (from $1.80), while reiterating a Neutral rating.
Aftahi noted, “Design Home has gotten off to a fairly strong start initially, ranking #1 (download) and #57 (grossing) in U.S. iPhone ranks currently. While early, it’s encouraging given GLUU’s more recent track record. In addition, Nick Earl, GLUU’s new CEO, purchased ~$200k of stock in the open market recently. While we believe its legacy catalogue continues to weigh, and maintain our Neutral, Design Home performance suggests 4Q Crowdstar guidance may be conservative.”
As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Darren Aftahi has a yearly average return of -6.4% and a 45% success rate. Aftahi has a -0.1% average return when recommending GLUU, and is ranked #3971 out of 4227 analysts.
Out of the 6 analysts polled by TipRanks (in the past 3 months), 4 rate Glu Mobile stock a Hold, while 2 rate the stock a Buy. With a return potential of nearly 8%, the stock’s consensus target price stands at $2.57.