Goldman Sachs Upgrades GameStop (GME) to Buy, Sees 31% Upside

Goldman Sachs upgraded GameStop (NYSE: GME) from Neutral to Buy with a price target of $25.00 (from $20.00), suggesting 31 percent upside.

The firm said while significant secular concerns are factored into the current multiple, 2013 EPS estimates are 14 percent lower. They sees 2013 upside due to: (1) an abatement of software declines in 3Q/4Q, (2) 2013 growing on new console launches achieving only half what comparable prior launches did, and (3) annual repurchase of 12%+ of shares with a 5.5% dividend yield.

Goldman raised 2012/13/14E EPS to $3.16/$3.82/$4.27 from $3.02/$3.07/$3.51 prior.

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 $19.08 yesterday.

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