GameStop's Core Video Game Business Likely To Stabilize Next Year; Loop Starts At Buy

Loop Capital Markets analyst Anthony Chukumba initiated coverage on GameStop Corp. GME with a Buy rating and a price target of $32, citing an expectation that video game results would stabilize, the existing attractive growth vehicles and the strong free cash flow.

With the matured console generation, GameStops core video game business has struggled over the past several quarters. In 2017, with a growing virtual reality segment and new console introductions, Chukumba expects it to stabilize.

The key growth vehicles cited by the analyst are GameStop’s technology brands, which the company hopes will see triple operating profit year-over-year, surpassing $200 million by 2019.

At last check, GameStop shares were up 3.05 percent at $25.65.