UPDATE: Bank of America Upgrades GameStop - GameStop (NYSE:GME)

In a note released Friday, Bank of America Merrill Lynch upgraded

GameStop

GME

from Neutral to Buy and raised the price objective from $43 to $56, which is based on a 13x 2014/15E EPS. Earlier in the year, Bank of America had downgraded GameStop to Neutral due to "worse than expected holiday results". Now, Bank of America analyst Curtis Nagle believes the "ramp up" in video game console expansion will "drive an acceleration in both sales and earnings trends". Nagle says that this generation of consoles are off to a "strong start" and notes that Xbox One and PS4 have "significantly" out sold the prior models. Nagle concluded his summary by listing three potential upside catalysts for GameStop:

March NPD data on 4/17 which includes the release of Titanfall, the first marquis next gen title. We believe it will set a strong precedent for forthcoming titles including Watch Dogs and Destiny.
GameStop's Analyst Day on 4/22 where we expect management to layout new LT financial targets (last updated in 2012) and more detail on the potential for its new non-core businesses.

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