UPDATE: Morgan Stanley Upgrades FarmVille Creator Zynga

In a note released Friday, Morgan Stanley upgraded Zygna (NASDAQ: ZNGA) from Underweight to Equal-weight.

Morgan Stanley analyst John Egbert says the upgrade is due in large to the release of the "long awaited" FarmVille 2: Country Escape. Egbert believes that new mobile title better aligns monetization with user engagement. Moreover, Egbert points to soft launches in Canada and Australia as reason to believe FarmVille 2 could be a top 20 grossing app when it is released in the U.S. in CQ2.

Turning to metrics, Egbert believes that, despite over a years worth of booking / DAU declines, Zynga should be able to start posting Q/Q growth on both metrics. Commenting on the outlook for Zynga, Egbert wrote, "We think Zynga will reaffirm 2014E guidance and likely exit CQ4:14E at 50%+ Y/Y organic bookings growth."