UPDATE: Wedbush Reiterates Outperform Rating, Raises PT on GameStop Corp. Ahead of Q1:13 Results

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In a report published Monday, Wedbush analyst Michael Pachter reiterated an Outperform rating on GameStop Corp.
GME
, and raised the price target from $33.00 to $49.00. In the report, Pachter noted, “We continue to believe that GameStop's core business will have a long tail. So long as physical video game products are produced, we expect GameStop to remain the market leader at retail, and we believe that the company's large used game business solidifies its relationship with a very large segment of the gaming population that values used games as currency to fund new game purchases. We do not expect next-generation consoles to block used games, and think that GameStop has at least 10 years of runway left in its core business. In the meantime, the company is leveraging its preeminent position in selling used game consoles into a strength in offering used smart phones, tablets and other consumer electronics, and we expect substantial growth from this category over the next several years. GameStop management has consistently returned the company's free cash flow to investors, and we expect them to continue to do so, suggesting to us that EPS growth will continue for much of the next decade.” GameStop Corp. closed on Friday at $39.76.
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