Wedbush Downgrades GameStop (GME) to Underperform; Valuation Disconnected From Fundamentals
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(Updated - March 24, 2021 6:29 AM EDT)
Wedbush analyst Michael Pachter downgraded GameStop (NYSE: GME) from Neutral to Underperform with a price target of $29.00 (from $16.00).
The analyst commented, "GameStop is well-positioned to be a primary beneficiary of the new console launches, and we remain quite optimistic that it will return to profitability by FY:21. The high-profile sustained short squeeze seen in recent months, however, has spiked the share price to levels that are completely disconnected from the fundamentals of the business. At the current share price level, we believe that a downgrade of the shares to UNDERPERFORM is warranted."
Shares of GameStop closed at $160.00 yesterday.
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