Bank Of America: GameStop Is Still A Go

In a report published on Friday, Bank of America analysts maintained a Buy rating on GameStop Corp GME, with a price objective of $48. In the report Bank of America noted, "Sharp acceleration in next gen HW NPD reported that US software sales in February rose +6.4% based on a 3.5% increase in volume and a 2.8% increase in ASP. This follows a 5.4% increase in January. Next gen software grew 84%, while prior gen fell 47% (portable was up 30%). Next gen comprised 58% of sales inline, with Jan. which was the highest to date. The top selling titles were Evolve and Dying Light." The analysts expressed optimism regarding the launch of Battlefield Hardline and several other smaller but still important titles in March. Battlefield's performance could be good in view of low competition, the launch not being hampered by bugs, a new Cops & Robbers format and the base seven million gamers who played the beta version. "We continue to think 2015 will be the year software growth comes to fruition (we est SW +10%). GME is no longer facing the headwinds that challenged 2014 (major title shifts, a pronounced drag from prior gen and a big step up in bundling) and the next gen installed base will be much larger and the title slate for 2015 is strong," the report said. "We also believe that investors will increasingly focus on GME's Tech Brands, which we see as underappreciated but high growth and profitable assets not priced into GME's shares," the analysts added.