GameStop (GME): Hardware Cycles Should Drive Store Traffic -Piper Jaffray

Piper Jaffray analyst, Mike Olson, attended E3 in LA earlier this week, where he met with all the major publishers and industry players. While there was no significant GameStop (NYSE: GME) specific news at E3, discussion of an updated slate of hardware to be launched in the coming 18 months is a positive for the company. Microsoft, Sony and Nintendo all have new or updated hardware coming in '16 and '17; historically, new hardware (such as a console update or compelling peripheral) has drawn gamers back into retail stores for first-hand testing. While GameStop clearly faces secular headwinds from the growth of digital full game downloads, he believes the company is well positioned to benefit from an ever increasing installed base of next-gen consoles (>60M), new hardware releases (including new/updated consoles and VR), and a solid 2H'16 software pipeline.

No change to Overweight rating or price target of $41.00

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 $26.13 yesterday.

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