GameStop May Post Positive Q3 Revenue Growth
Analysts at Hudson Square Research maintain their “buy” rating for GameStop (NYSE: GME). The 12-month target price for GME is set to $46.
Hudson Square Research expects GME to post its Q3 results marginally ahead of the consensus expectations. With the decline in GME’s domestic industry revenues for Q3 lower than that for Q2, Hudson Square Research expects the company’s revenue growth to have turned positive. According to Hudson Square Research, a 7% fall in GME’s comps is likely to be offset by roughly 12% rise in company’s stores.
Hudson Square Research believes that market would focus more on GameStop’s projections for Q4 and FY10 rather than Q3 results. Recent checks have indicated GME’s recently launched COD: Modern Warfare 2 and the New Super Mario Bros were solid and may act as momentum builders going into the holiday season.
