GameStop (GME) E3 Raises Concerns - Oppeheimer

Oppenheimer analyst, Brian Nagel, checked on GameStop (NYSE: GME) at E3, and does not see any signs of an inflection point. The analyst spent a lot of time chatting with senior execs at leading video game publishers and hardware manufacturers. Overall, his findings suggest, for GME, a potentially, modestly more conducive, but still problematic video gaming backdrop. Publishers now seem, at least somewhat, more occupied with driving sales of add-on content than full game downloads. New iterations of leading platforms should facilitate a healthy replacement cycle and could spur better software sales. Virtual reality (VR), while promising, is apt to take time to garner the attention of a mass audience. Looking beyond the cycle, the analyst is increasingly optimistic that income-oriented investors will start to embrace the nearly 6% dividend yield offered by GME.

No change to Perform rating.

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 $25.73 yesterday.

You May Also Be Interested In

• RBC Capital Downgrades Downer EDI Ltd (DOW:AU) (DNERF) to Sector Perform
• UBS Starts Urban Company (URBANCO:IN) at Buy
• Rubrik Inc (RBRK) PT Raised to $120 at Oppenheimer; Sees Another 'Beat and Raise'