GameStop Corp.’s (GME) Coverage Initiated With A Hold (2) Rating

BB&T Capital Markets has initiated coverage for GameStop Corp. (NYSE: GME) with a Hold (2) rating.

According to BB&T, the GameStop stock has underperformed over the last several months as the company has been hit by a weak industry performance, increased competition, and additional concerns about digital disintermediation. However, BB&T expects the industry to recover in 2010.

BB&T Capital Markets believes that the company’s abundant free cash flow should provide a base for its valuation.