Bank of America upgrades Zynga as video game company pushes into advertising

A Zynga logo, the U.S. social game developer running social video game services.
Pavlo Gonchar | LightRocket | Getty Images

Zynga's move to diversify its business away from pure video game publishing raises the upside for the stock, Bank of America said in a note to clients on Thursday.

The company announced a $250 million deal to acquire programmatic ad platform Chartboost on Wednesday, along with stronger-than-expected bookings for the first quarter. Bank of America analyst Ryan Gee upgraded the stock to buy from neutral, saying the move showed that Zynga is pivoting faster than investors expected.