Analysts on Wall Street are increasingly becoming delighted by the prospects of Glu Mobile Inc. (NASDAQ:GLUU) in augmented reality game industry. It is the success of Nintendo’s Pokémon Go game that has boosted analyst sentiment regarding the opportunities for Glu Mobile in augmented reality games.
As for SPYR Inc (OTCMKTS:SPYR), the company has sent representatives to attend some significant industry events taking place in Europe. The showcasing in Europe by SPYR’s publishing and development team comes as the company prepares to release its Drone Wars game in fall.
Bullish estimates
Citing attractive prospects for Glu Mobile Inc. (NASDAQ:GLUU) in augmented reality play, analysts at Agora Finance recently moved to issue a BUY rating on the stock. On top of that, the analysts planted a $3 price target on the stock. Shares of Glu Mobile are currently changing hands in the vicinity of $2 and are down more than 52% over the last 12 months.
Both the current price of Glu Mobile shares relative to 52-week high of $4.96 and the price target suggest a decent upside potential for the stock.
Affiliation with Tencent
In addition to Pokémon Go stirring up appetite for augmented reality games, analysts believe that Glu Mobile stands to benefit from its affiliation to Tencent Holdings Ltd (OTCMKTS:TCTZF). Sometime last year, Tencent took invested in Glu Mobile and took a 14.6% in the company with the promise of helping it tap into China’s video and digital games market.
Besides the cash injection, the association with Tencent brings additional reputational boost to Glu Mobile Inc. (NASDAQ:GLUU), which should further help the company grab opportunities in the augmented reality games space.
Glu Mobile posted EPS loss of $0.03 in the latest quarter, exceeding the expectations for a loss of $0.05. Revenue of $48.36 million for the quarter declined 13.9% YoY and also beat Wall Street estimate.
What’s SPYR doing in Europe?
A team from SPYR Inc (OTCMKTS:SPYR)’s development and publishing department will be in Germany between August 15 and August 21 to showcase at three games conferences in Cologne. Presentations by the team are expected to boost SPYR’s visibility in the global electronic games industry.
