GameStop (GME): Continue to Buy on Weakness -SunTrust
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Price: $11.21 +2.56%
Rating Summary:
3 Buy, 11 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
3 Buy, 11 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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SunTrust Robinson Humphrey is out with a research note intraday suggesting that investors continue to buy shares of GameStop (NYSE: GME). With the stock down more than 15% from the beginning of June, the firm continues to believe that GameStop "is an attractive buy." The firm maintains a Buy rating, but cut its price target on GameStop from $71 to $60.
SunTrust believes recent weakness and P/E compression can be attributed to "bear market conditions, possibly exacerbated by end-of-quarter window dressing." On the other hand, the firm believes demand in the video game world remains strong and reiterates its stance that GameStop will meet SunTrust's Q2 EPS estimate of $0.27.
The firm sees strong title releases moving into Q3, specifically calling Rock Band 2, Fable 2 and Gears of War 2 "huge titles." Based on these titles and continued strong momentum so far in 2008, SunTrust believes GameStop's Q3 could be "better than we think."
With shares of GameStop trading around $40.80 today, SunTrust's new price target represents a potential return of about 45%.
GameStop Corp. operates as a retailer of video game products and personal computer (PC) entertainment software.
SunTrust believes recent weakness and P/E compression can be attributed to "bear market conditions, possibly exacerbated by end-of-quarter window dressing." On the other hand, the firm believes demand in the video game world remains strong and reiterates its stance that GameStop will meet SunTrust's Q2 EPS estimate of $0.27.
The firm sees strong title releases moving into Q3, specifically calling Rock Band 2, Fable 2 and Gears of War 2 "huge titles." Based on these titles and continued strong momentum so far in 2008, SunTrust believes GameStop's Q3 could be "better than we think."
With shares of GameStop trading around $40.80 today, SunTrust's new price target represents a potential return of about 45%.
GameStop Corp. operates as a retailer of video game products and personal computer (PC) entertainment software.
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