(Reuters) - JMP Securities initiated coverage on Zynga Inc (ZNGA.O) with a “market outperform” rating, Dow Jones reported, sending the social gaming company’s shares up as much as 10 percent.
Zynga, one of the several Internet startups that made a debut with fanfare last year, slashed its 2012 earnings outlook late last month blaming a steep drop-off in players for its core Facebook Inc (FB.O) money-makers.
Shares of the San Francisco-based creator of “Farmville” were up 7 percent at $3.17 on the Nasdaq on Wednesday morning. They have lost more than 40 percent of their value since the company slashed its outlook on July 25.
Reporting by Supantha Mukherjee in Bangalore; Editing by Supriya Kurane