As GameStop’s (GME) stock has plunged over the past 3 months, Citi has held firm with its $66 target. Now that the stock is cheap in the bank’s eyes (a little above $42 as if this writing), Citi analyst Tony Wible is downright giddy. A recession is just a buying opportunity, right?
Citi has been singling out E3, the annual trade show for the computer and video games industry, as a major catalyst for the stock and now it’s upon us. Wible sees three more reasons to buy GME:
- a larger than expected push to expand casual gaming with more accessories and software innovation
- the increased growth of social gaming; 2H08 games should support co-op play that leads to more game sales
- the “robust power” of 7th gen systems (the graphics look “amazing” and leave Citi “extremely impressed”)
GameStop (GME): E3 To Jump Start Shares (GME)
Retail Outlook “Disturbing”, But GameStop (GME), Lowe’s (LOW), Others Will Prevail (GME, LOW, SPLS, ORLY, PETM, ODP, KMX, SHLD)
GameStop (GME) Collapses, So Goldman Upgrades to Neutral (GME)
Business Insider Emails & Alerts
Site highlights each day to your inbox.