Ascendiant Capital Maintains a 'Buy' on GameStop (GME); Despite Concerns, Valuation is Still Attractive
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Price: $18.09 +0.28%
Rating Summary:
3 Buy, 11 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 4 | New: 2
Rating Summary:
3 Buy, 11 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 4 | New: 2
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Ascendiant Capital maintains a 'Buy' on GameStop (NYSE: GME) price target lowered from $30 to $25.
Analyst, Edward Woo, said, "Q1 in line with preannouncement, Q2 guidance weak...We are lowering our FY12 estimates for revenue to $9.27 billion from $9.54 billion, comps to -3.1% from -0.1%, and EPS to $3.16 from $3.20. We are lowering our FY13 estimates for revenue to $9.47 billion from $9.79 billion, comps to +1.8% from +2.0%, and EPS to $3.40 from $3.50."
Woo's two concerns are: 1) Video game industry sales have been on the decline over the past three years (with 2012 as well); and 2) Concerns on game software distribution transitioning to digital. However, two positives are: 2) Attractive valuation; and 2) Strong cash flow
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 $18.52 yesterday.
Analyst, Edward Woo, said, "Q1 in line with preannouncement, Q2 guidance weak...We are lowering our FY12 estimates for revenue to $9.27 billion from $9.54 billion, comps to -3.1% from -0.1%, and EPS to $3.16 from $3.20. We are lowering our FY13 estimates for revenue to $9.47 billion from $9.79 billion, comps to +1.8% from +2.0%, and EPS to $3.40 from $3.50."
Woo's two concerns are: 1) Video game industry sales have been on the decline over the past three years (with 2012 as well); and 2) Concerns on game software distribution transitioning to digital. However, two positives are: 2) Attractive valuation; and 2) Strong cash flow
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 $18.52 yesterday.
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