Standpoint Initiates GameStop With A Buy (GME)
Standpoint Research initiated shares of GameStop (NYSE: GME) with a Buy rating today and a $36 price target. This morning, the Grapevine, Texas based video game retailer reported better than expected earnings, and the stock has surged 8% to $21.43 during the current trading session. Last night, in previewing GME's earnings, I noted that the stock had been moving higher in the days prior to this report, and predicted the company would offer an upside surprise. That article can be found here.
Standpoint analyst, Ronnie Moas wrote that a short squeeze is likely to unfold in this name and it is worth paying up for the shares today. Furthermore, he said that the "shares appear extremely attractive here, undervalued on the basis of just about every relative and absolute measure." Standpoint's price target is based on EPS of $3.00 and an earnings multiple of twelve.
