Benchmark Cuts Price Target on GameStop (GME) Following Pre-Announced 3Q

November 28, 2016 7:44 AM EST
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Price: $23.58 +1.16%

Rating Summary:
    12 Buy, 10 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Benchmark maintained a Sell rating on GameStop (NYSE: GME), and cut the price target to $20.11 (from $20.67), following the company's pre-announced financial performance and 2016 guidance. The Company reported total sales of $1.959B, down 3% from the prior year. The Company’s Hardware and Software sales were down 21% and 9%, respectively, and represented 46% of the Company’s total sales.

Analyst Mike Hickey commented, "On 11/02, based on weaker than expected new software and hardware sales, the Company pre-announced preliminary disappointing financial performance and lowered fiscal ’16 guidance; the midpoint of their new fiscal ’16 EPS range was a 15% reduction from Benchmark’s estimate. The Company’s diversification efforts are not offsetting core segment deterioration, as digital continues to drive market share, in our view."

For an analyst ratings summary and ratings history on GameStop click here. For more ratings news on GameStop click here.

Shares of GameStop closed at $25.82 yesterday.

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