Wedbush Cuts Price Target on GameStop (GME) to $36 Following 4Q Results
Wedbush maintained an Outperform rating on GameStop (NYSE: GME), and cut the price target to $36.00 (from $38.00), following the company's 4Q report and guidance. Sales totaled $3.53 billion, compared with the consensus estimate of $3.57 billion. Non-GAAP EPS was $2.40, compared with the consensus estimate of $2.25.
Analyst Michael Pachter commented, "GameStop reported in line results, and provided solid guidance for FY:16, but relatively weak guidance for Q1. Revenues were only $30 million below expectations and EPS substantially higher, as the company’s mobile business contributed significantly higher than expected operating profits. Q1 guidance calls for negative comps of (7) – (9)%, lower than street expectations, due to a lackluster video game release schedule and price cuts for the best-selling consoles."
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Shares of GameStop closed at $30.27 yesterday.