Are video games recession-resistant? Citi may think so, but Goldman doesn’t.
Goldman has upgraded GameStop (GME) to Neutral today, but the only because the stock fell below its $50 target (which the firm cut to $45 today).
While Goldman isn’t bullish on software sales, they don’t see additional risk in the company’s competitive landscape. GME’s 2005 acquisition of its largest competitor, Electronic Boutique, limits its downside.
Goldman upgrades GameStop (GME) from Sell to NEUTRAL, cuts target from $50 to $45.