JANCO Partners Upgrades GameStop (GME) to Buy; Positive on Current Trends

JANCO Partners upgraded GameStop (NYSE: GME) from Accumulate to Buy. PT adjusted from $25.86 to $25.21.

JANCO analyst said, "For CY’11, we believe the Company’s financial performance will benefit from an expanding video game market, platform extensions including Microsoft’s (Nasdaq: MSFT) Kinect, next generation mobile platforms including Nintendo’s 3DS and digital sales growth through in-store PDLC sales and continued ecommerce development. Management has executed on a meaningful share repurchase, debt reduction, digital strategy and measured store growth strategy; effectively over shadowing bearish concerns over longer term digital obsolescence, in our view. Shares are currently trading 3.8X and 6.8X our fiscal ’11 EBITDA and EPS estimates, suggesting sufficient value to upgrade shares. "

For more ratings news on GameStop click here and for the rating history of GameStop click here.

Shares of GameStop closed at $19.77 yesterday.

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