Leading financial analyst NCP is backing Glu Mobile as a unique way to invest in the rapidly growing mobile gaming market.
The company highlights Glu's technology and its independent status as key advantages in the sector.
"Glu has a solid infrastructure of attractive brands, scalable technology, and strong carrier relationships and we believe simply needs to continue on its path of growing revenue 30-40 per cent per year in order to achieve meaningful profitability," said NCP's Todd Greenwald in his latest note to investors.
The publishers ability to produce titles quickly and efficiently is seen as a major strength in the market although NCP did warn that because Glu licenses content from other companies, it does not have the IP advantages of its closest rivals, EA Mobile and Gameloft.
"Glu has developed a highly scalable, efficient system for the development of porting games, which is a key advantage over its peers," offered Greenwald.
"Despite Glu's strong positioning, EA Mobile and Gameloft both pose significant threats as both have much larger resources to spend on development and marketing and a vast library of internally owned content with their respective parent companies, EA and Ubisoft."
Some of Glu's key partners include Celador (Who Wants to Be a Millionaire), Warner Bros (Looney Tunes), Konami, Codemasters and Hasbro.