Baird Maintains an 'Outperform' on GameStop (GME); Q2 Review; Raises Numbers on Expected Good Holiday Season
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Price: $18.66 +0.48%
Rating Summary:
3 Buy, 11 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 11 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Baird maintains an 'Outperform' on GameStop (NYSE: GME) price target of $29.00.
Analyst, Colin Sebastian, said, "No major surprises in Q2 results. Sluggish console and new game sales continue to dampen revenue growth due to cyclical and secular issues; however, margins and EPS were better than expected due to mix shift to Used and Digital/Mobile sales. Despite the challenging console transition period, a new dividend yield of 5.5%, solid profitability, a very low valuation should limit downside in shares, and we maintain our rating."
Sebastian expects new console launches in late 2013. He also notes GME's dividend increase and recent stock buybacks. However, he raises Q3 EPS estimate from $0.28 to $0.29, but lowers revenues from $1.79B to $1.77B. FY12 EPS estimate bumped from $3.08 to $3.10.
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 $17.05 yesterday.
Analyst, Colin Sebastian, said, "No major surprises in Q2 results. Sluggish console and new game sales continue to dampen revenue growth due to cyclical and secular issues; however, margins and EPS were better than expected due to mix shift to Used and Digital/Mobile sales. Despite the challenging console transition period, a new dividend yield of 5.5%, solid profitability, a very low valuation should limit downside in shares, and we maintain our rating."
Sebastian expects new console launches in late 2013. He also notes GME's dividend increase and recent stock buybacks. However, he raises Q3 EPS estimate from $0.28 to $0.29, but lowers revenues from $1.79B to $1.77B. FY12 EPS estimate bumped from $3.08 to $3.10.
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 $17.05 yesterday.
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Robert W Baird, DividendSign up for StreetInsider Free!
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