UPDATE: Oppenheimer Downgrades GameStop (GME) to Perform

(Updated - November 24, 2015 10:14 AM EST)

Oppenheimer downgraded GameStop (NYSE: GME) from Outperform to Perform and removed its price target (prior $51.00). The change follows Q3 EPS and guidance. Analyst Brian Nagel noted that software sales continue to disappoint and called digital downloads a growing headwind.

"For a while we have recommended GME as a speculative means to play a strengthening video gaming product cycle. From time to time, trends at GME have appeared poised to break out. But more often we have been left scratching our heads trying to explain why a seemingly stronger cycle is not helping to fuel better results at GME. Our concern is that the cycle sweet spot is now set to pass without a resultant marked acceleration in sales at the chain. GME is sentiment-driven. A mere normalizing of demand trends as the cycle persists will likely only strengthen the already very prevalent longer term short thesis on shares," said Nagel.

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 $37.61 yesterday.

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