Needham & Company Downgrades GameStop (GME) to Hold; Adjusting Estimates as We See Few Catalysts To Boost Multiples
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Price: $10.41 +0.97%
Rating Summary:
3 Buy, 11 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
3 Buy, 11 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Needham & Company downgraded GameStop (NYSE: GME) from Buy to Hold.
Analyst, Sean McGowan, said, "4Q’11 results were in line with consensus expectations, but were slightly below our estimates. More importantly, while we believe GME has taken a number of well executed steps to reduce its dependency on traditional video games, and is doing just about everything it can to “soften the blow” of the industry’s rapid and accelerating shift to non-retail distribution, we believe the specter of slowing retail sales will continue to weigh on the shares. Moreover, we do not believe the coming launches of new video game consoles (Nintendo in 2012, Sony (NYSE: SNE) and Microsoft (Nasdaq: MSFT) next year) will give GME and other retailers as much of a boost as prior generations have."
FY12 EPS estimate cut from $3.35 to $3.10, but FY13 from $3.75 to $3.85.
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 $21.42 yesterday.
Analyst, Sean McGowan, said, "4Q’11 results were in line with consensus expectations, but were slightly below our estimates. More importantly, while we believe GME has taken a number of well executed steps to reduce its dependency on traditional video games, and is doing just about everything it can to “soften the blow” of the industry’s rapid and accelerating shift to non-retail distribution, we believe the specter of slowing retail sales will continue to weigh on the shares. Moreover, we do not believe the coming launches of new video game consoles (Nintendo in 2012, Sony (NYSE: SNE) and Microsoft (Nasdaq: MSFT) next year) will give GME and other retailers as much of a boost as prior generations have."
FY12 EPS estimate cut from $3.35 to $3.10, but FY13 from $3.75 to $3.85.
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 $21.42 yesterday.
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