Wedbush Maintains Outperform, $33 PT on GameStop

Wedbush remains Outperform-rated on GameStop (NYSE: GME) with a $33 target price as the company announces first quarterly cash dividend of $0.15/share.

Wedbush notes, "n November 2011, the Board authorized a $500 million stock and debt buyback program. In December 2011, the company redeemed its remaining $125 million of Senior Notes outstanding, and is now debt-free. After redeeming these notes, and repurchasing ≈ $45 million of shares over the holiday period (9-weeks ending December 31, 2011), we estimate that the company will end the year with over $680 million of cash, meaning it can easily afford the first dividend payment in the April 2012 quarter."

GME closed at $25.25 a share on Tuesday.