Buy GameStop (GME) on Holiday Sales Weakness - Janney
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Price: $38.50 -1.31%
Rating Summary:
8 Buy, 3 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 24 | Down: 17 | New: 24
Rating Summary:
8 Buy, 3 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 24 | Down: 17 | New: 24
Trade GME Now!
With shares of GameStop (NYSE: GME) down 8 percent following Holiday sales numbers, Janney Montgomery Scott Buy analyst Tony Wible says the stock should be bought.
"We recommend GME based on: 1) its peak market share position at the onset of a next gen game cycle; 2) new sources of high margin revenue from iDevice trades and digital initiatives that reposition GME in the evolving landscape; and 3) the move towards usage-based billing of Internet data. Furthermore, the company will benefit from easing comps, a strong balance sheet, large dividend payments, and share repurchases. We believe low expectations and a high short interest create a positive risk/reward, and that investors able to buy/hold the stock through holiday 2013 will be rewarded. We are lowering our 2013 and 2014 estimates but maintaining our Fair Value of $32."
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 $24.75 yesterday, with a 52 week range of $15.32-$28.35.
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"We recommend GME based on: 1) its peak market share position at the onset of a next gen game cycle; 2) new sources of high margin revenue from iDevice trades and digital initiatives that reposition GME in the evolving landscape; and 3) the move towards usage-based billing of Internet data. Furthermore, the company will benefit from easing comps, a strong balance sheet, large dividend payments, and share repurchases. We believe low expectations and a high short interest create a positive risk/reward, and that investors able to buy/hold the stock through holiday 2013 will be rewarded. We are lowering our 2013 and 2014 estimates but maintaining our Fair Value of $32."
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 $24.75 yesterday, with a 52 week range of $15.32-$28.35.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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