Buy GameStop (GME) on Holiday Sales Weakness - Janney

January 8, 2013 10:25 AM EST Send to a Friend
Get Alerts GME Hot Sheet
Price: $40.60 -0.27%

Rating Summary:
    10 Buy, 6 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 29 | Down: 28 | New: 24
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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.


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Janney Montgomery Scott, Dividend

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