UPDATE: Goldman Sachs Upgrades GameStop to Buy as Hardware Drought Breaks
Goldman Sachs raised its rating on GameStop (NYSE: GME) from Hold to Buy and increased its price target from $20 to $25.
Goldman Sachs commented, "We see a tactical opportunity for upside in GameStop shares over the next 12 months and upgrade to Buy with 31% upside to our $25 price target. We think significant secular concerns are factored in its current multiple, but that EPS estimates for 2013 are low by ~14%. Factors that drive our above consensus view include: (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."
GameStop closed at $19.09 on Friday.
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