Zynga’s has a chance to snatch up to $5 billion in potential revenue if it expands into online gambling, according to a new research note by JP Morgan.Online gambling represents a market opportunity of between $3.5 billion and $5 billion, which will be realised by 2015, according to the note.
Zynga confirmed last week that it was looking into expanding its games into online gambling.
For some context, Zynga’s current revenue is on an annualized run rate of ~$1.2 billion.
JP Morgan has set a price target of $12 for Zynga (which has been trading under its IPO price of $10 for a while) on the strength of its upcoming release schedule and the prospect of online gambling within Zynga’s games.
Morgan Stanley also set a price target of $14 for the social gaming company, saying it is entering a deep launch cycle that could meaningfully re-accelerate bookings growth.