Canaccord Sees Buying Opportunity As Glu Mobile Inc. (GLUU) Shares Slide

Canaccord analyst Michael Graham weighed in today with a favorable report on Glu Mobile Inc. (NASDAQ:GLUU), as the company’s stock has been weak since its latest earnings report, dropping more than 20%. The analyst maintained a Buy rating, with a price target of $9.00, which implies an upside of 104.5% from current levels.

Graham wrote, “When Glu reported Q2 results, the quarter was strong; however, Q3 outlook was impacted by some game launch delays and the stock was punished significantly. We believe this is likely to prove to be a buying opportunity.” Furthermore, “While we acknowledge that Q2’s pushouts remove some of the upside potential for 2015, we note that Glu’s batting average continues to improve with Q3’s launches. We continue to believe the management team is building a more repeatable, sustainable business. We are looking forward to Q3 earnings and the next celebrity game launch as important validating data points.”

“Taking all our findings into account, we find that there is a good case for upside to Q3 numbers. Our bottom-up game analysis, based on historical Glu bookings and current App Store gross rankings, gives us 13% upside to our current Q3 estimate and 14% upside to the mid-point of the company’s guidance,” the analyst added.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Michael Graham has a total average return of 8.2% and a 51.3% success rate. Graham has an 3.4% average return when recommending GLUU, and is ranked #396 out of 3742 analysts.

All the 7 analysts polled by TipRanks rate Glu Mobile stock a Buy. With a return potential of 95%, the stock’s consensus target price stands at $8.56.

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