Mizuho Securities Starts GameStop (GME) at Buy

Mizuho Securities initiates coverage on GameStop (NYSE: GME) with a Buy rating and a price target of $35.00.

Analyst San Phan commented, "We are initiating coverage on GameStop with a Buy rating. We believe GME’s current price does not adequately reflect the company’s operating performance, business prospects, and track record of returning shareholder value. We believe physical console game discs will not disappear anytime soon and the digital shift will be a longer runway than widely believed. In the meantime, we see GameStop continuing to gain share in VG sales at retail, while diversifying its business with Digital, Tech Brands, and Collectibles. Our $35 PT is based on 5x our 2017 EV/EBITDA estimates and 8x our EPS estimate."

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 $26.39 yesterday.

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