UPDATE: National Alliance Capital Downgrades Glu Mobile to Accumulate, Lowers PT

In a report published Wednesday, National Alliance Capital Markets Group downgraded its rating on Glu Mobile (NASDAQ: GLUU) from Buy to Accumulate, and slightly lowered its price target from $6.04 to $3.96.

National Alliance Capital noted, “The Company's product portfolio offers a pure play growth nexus between several compelling market trends: mobile gaming, mobile advertising, smartphone / tablet platforms and emerging connected TV. Aggressive market growth combinated with a strong game pipeline with leveragable channel partners; should provide a solid performance foundation for near term growth within a visible EBITDA inflection point. The current management team has a strong track record of execution, and a dedicated design approach to mobile market opportunities. The Company is a pure play on mobile, and should directly benefit from the player exodus from web social platforms. The Company's product portfolio and subsequent financial performance should benefit from the rapidly expanding smartphone / tablet device market and related software ecosystem. We suspect global smartphone sales in fiscal ‘12 could exceed 700 million devices, up +40% from an estimated 500 million devices prior year.”

Glu Mobile closed on Tuesday at $3.29.