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Zynga Downgraded to Underperform

 (Image source: businessinsider.com)

After reporting fourth quarter losses last week that were slightly below analyst expectations, shares of Zynga Inc (NASDAQ:ZNGA) are retreating from the Friday highs as a result of a downgrade from Bank of America Merrill Lynch. The social media game producer was downgraded to underperform from neutral. Compared to traditional game makers, the bank believes that Zynga is overvalued. Moreover, the bank believes that Zynga’s earnings guidance for 2014 will be below the lower end.  As a result, the price target was decreased to $3.80 per share.