Some two days back, Glu Mobile Inc (NASDAQ:GLUU) made an announcement revealing that it struck a multi-year partnership with World Wrestling Entertainment, Inc (NYSE:WWE).The newly formed alliance would see the two business giants come up with a new wrestling game. According to reports, the new game will be unveiled in 2018. As a matter of fact, it will feature WWE superstars such as John Cena among others.
Darren Aftahi, a Roth Capital analyst while recently addressing a number of top news reporters was heard reiterating a Buy rating with a price target of $3.75.This was an upside of nearly 43% in close comparison to the exact place the shares were during the closing period.
In a recent board meeting, Aftahi exuded great confidence in the new partnership citing that it would most probably bring a long a wide range of desirable benefits.
The top analyst added, “We are optimistic about the accretive potential that the WWE game could contribute to FY18 bookings given GLUU‘s recent success of TSB and the loyal fan following the WWE trademark brings with it.”He thinks the sports game announcement brought with it immense confidence in its FY18 bookings estimates of ~$318M.
Aftahi has provided a number of updates regarding Glu’s upcoming game release schedule. Beta form of Car Town Racing will be launched in Malaysia in weeks to come. After another three months, reports indicate that it will be unveiled globally if things go according to plan. The analyst is currently looking forward to the unveiling of the Taylor Swift game and a zombie shooter game.
According to Yahoo, Glu Mobile Inc has lately been focusing in the creation of more consistent revenue streams. To achieve its goal, the provider has been setting up platform-type games in order to earn repeatable, predictable revenue .It has channeled a lot of resources into carrying out numerous updates to its existing games. The employment of better graphics and the advanced game-play are some of the things the top end provider is counting on towards giving a lift to its in-app purchases.