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”)
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