Wedbush Does Not Expect EA Access to Materially Impact GameStop Corp. Near-Term

In a report published Wednesday, Wedbush analyst Michael Pachter reiterated an Outperform rating and $60.00 price target on

. In the report, Wedbush noted, “The announcement of EA Access has the potential to spur similar offerings from EA's competitors. Although there should be a limited impact to GameStop's core business from EA Access given the aforementioned factors, similar digital services that drive wallet share towards online marketplaces and away from GameStop have the potential to hurt the business long-term. Microsoft or Sony could partner with the other publishers to offer discounted digital content as well. The real danger, in our view, is that the EA Access announcement begins a slippery slope for GameStop in which a plethora of other digital services (featuring discounted pricing) emerge in upcoming months. However, so long as publishers offer similar subscriptions only to their own content (and not through an aggregator), we think that the appeal of the model pioneered by EA Access will remain limited.” GameStop Corp. closed on Tuesday at $43.43.