Michael Pachter, equity analyst for Wedbush Securities, recently joined PreMarket Prep to share his thoughts on Zynga Inc ZNGA 0.35%. According to Pachter, the battered gaming stock is well worth the risk at its current price.

‘Revolving Door’ Management

“They’re in their fifth year of a one- to two-year turnaround,” Pachter joked, pointing out the company’s revolving door of CEOs in recent years. However, he believes current management is on the right track.

“They’re paring away all the games that weren’t really making much money, so revenues have been stalled for three years in a row,” he explained.

Currently Well Positioned

However, Pachter believes Zynga is now well-positioned for the launch of the new game “Dawn of Titans” within the next couple of weeks.

“If you get a couple hundred million of revenue growth with improving margins, I think you get pretty dramatic EBITDA growth,” he said of Zynga’s new lineup.

Pachter currently has a $4.25 price target for Zynga and he believes shareholders could see significant near-term upside.

“I think investors can step…

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