Analyst Sees Buying Opp. in GameStop (GME); Used Video Game Market 'Not Going Anywhere'
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Price: $39.76 +4.49%
Rating Summary:
7 Buy, 4 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
7 Buy, 4 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade GME Now!
GameStop (NYSE: GME) shares are ticking higher as it gained a fan this afternoon.
BMO Capital's Edward Williams said the gaming hardware and software retailer is seeing some volatility as next-generation consoles launch and many fear that there won't be a model for disc-based offerings.
Williams noted that Microsoft (Nasdaq: MSFT), Sony (NYSE: SNE) and others rely on GameStop for game distribution, not to mention that gamers generally bring in used games to exchange for credits towards new purchases. Getting rid of the used game model "won't work at all," he noted. Consoles are more likely to use some sort of "hybrid solution," which would ease the transition process.
Williams thinks that GameStop is a buy in the low-$20 range. He currently rates the stock at Outperform with price target of $24.
Shares of GameStop are down 6 percent on the session.
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BMO Capital's Edward Williams said the gaming hardware and software retailer is seeing some volatility as next-generation consoles launch and many fear that there won't be a model for disc-based offerings.
Williams noted that Microsoft (Nasdaq: MSFT), Sony (NYSE: SNE) and others rely on GameStop for game distribution, not to mention that gamers generally bring in used games to exchange for credits towards new purchases. Getting rid of the used game model "won't work at all," he noted. Consoles are more likely to use some sort of "hybrid solution," which would ease the transition process.
Williams thinks that GameStop is a buy in the low-$20 range. He currently rates the stock at Outperform with price target of $24.
Shares of GameStop are down 6 percent on the session.
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