Goldman Sachs Neutral on GameStop

Goldman Sachs is out with a research report on GameStop Corp.

and it has a Neutral rating and a $24 price target on shares. In a note to clients, Goldman Sachs writes, "GME's 3Q results highlighted the challenge of generating growth in the videogame sector, but also shed light on encouraging gross margin dynamics that could prove more durable than originally expected. * Sales tracked light of consensus and guidance, but exceeded our forecast. We believe the weakness vs. the Street reflects the maturity of the console cycle and declining tie ratios, resulting in cannibalization of non-core title by new releases. We expect this dynamic to endure and forecast a 4% decline in industry sales in 4Q." Shares of GME closed at $21.93 yesterday, down 59 cents.