Ascendiant Capital Maintains a 'Buy' on GameStop (GME); Despite Concerns, Valuation is Still Attractive
Tweet Send to a FriendGet Alerts GME Hot Sheet
Price: $38.53 +0.18%
Rating Summary:
8 Buy, 3 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
8 Buy, 3 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Trade GME Now!
Ascendiant Capital maintains a 'Buy' on GameStop (NYSE: GME) price target lowered from $30 to $25.
Analyst, Edward Woo, said, "Q1 in line with preannouncement, Q2 guidance weak...We are lowering our FY12 estimates for revenue to $9.27 billion from $9.54 billion, comps to -3.1% from -0.1%, and EPS to $3.16 from $3.20. We are lowering our FY13 estimates for revenue to $9.47 billion from $9.79 billion, comps to +1.8% from +2.0%, and EPS to $3.40 from $3.50."
Woo's two concerns are: 1) Video game industry sales have been on the decline over the past three years (with 2012 as well); and 2) Concerns on game software distribution transitioning to digital. However, two positives are: 2) Attractive valuation; and 2) Strong cash flow
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 $18.52 yesterday, with a 52 week range of $18.34-$28.66.
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
Analyst, Edward Woo, said, "Q1 in line with preannouncement, Q2 guidance weak...We are lowering our FY12 estimates for revenue to $9.27 billion from $9.54 billion, comps to -3.1% from -0.1%, and EPS to $3.16 from $3.20. We are lowering our FY13 estimates for revenue to $9.47 billion from $9.79 billion, comps to +1.8% from +2.0%, and EPS to $3.40 from $3.50."
Woo's two concerns are: 1) Video game industry sales have been on the decline over the past three years (with 2012 as well); and 2) Concerns on game software distribution transitioning to digital. However, two positives are: 2) Attractive valuation; and 2) Strong cash flow
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 $18.52 yesterday, with a 52 week range of $18.34-$28.66.
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
You May Also Be Interested In
- UPDATE: BofA/Merrill Lynch Upgrades Adobe (ADBE) to Buy
- Goldman Sachs Upgrades Tanger Factory Outlet Centers (SKT) to Neutral
- Lazard Raises PT on Chicago Bridge & Iron (CBI) to $75
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
