Goldman Sachs Raises Estimates & Cuts Price Target on GameStop (GME), Market Trends Show Changes In Demand
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Price: $18.04 --0%
Rating Summary:
3 Buy, 11 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
3 Buy, 11 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Goldman Sachs is lowering their price target by $1 to $22 on shares of GameStop (NYSE: GME), but is raising their estimates to go inline with current market trends and the video game industry's consul pipeline. They are maintaining their Neutral rating.
The firm reports that they are raising their 2011 and 2012 EPS estimates to $2.82 and $2.95 from $2.74 and $2.84, but notes that their estimates are 3-5% below the streets as increased digital penetration and the lack of a new product cycle outweigh their expectations for continued market share gains, sizeable success for the firm’s digital effort, the lucrative used niche, and large buybacks.
Goldman comments that, "We forecast continued declines in physical software and hardware sales, as a structural shift to digital delays new console development, forestalling a new console cycle. Our new work on digital video-games suggests penetration could reach 46% of the overall market and 15% of the console market by 2012. We expect GME to gain meaningful share of both the physical and digital markets, but expect sales to decline nonetheless."
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.
The firm reports that they are raising their 2011 and 2012 EPS estimates to $2.82 and $2.95 from $2.74 and $2.84, but notes that their estimates are 3-5% below the streets as increased digital penetration and the lack of a new product cycle outweigh their expectations for continued market share gains, sizeable success for the firm’s digital effort, the lucrative used niche, and large buybacks.
Goldman comments that, "We forecast continued declines in physical software and hardware sales, as a structural shift to digital delays new console development, forestalling a new console cycle. Our new work on digital video-games suggests penetration could reach 46% of the overall market and 15% of the console market by 2012. We expect GME to gain meaningful share of both the physical and digital markets, but expect sales to decline nonetheless."
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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