- GameStop (GME +0.7%) is defended at Sterne Agee with a reiterated Buy rating on the firm's belief that new consoles will reach the 50M level by 2015 to support the company's business model.
- The dismantling of shares of GameStop yesterday was based on the premise that although Xbox One and PlayStation 4 gaming consoles sold well, consumers are buying fewer older-model games than anticipated in a trend that cuts deeply into profit margins.
- Sterne takes the long view that the new console cycle still sets up GameStop well as gamers reload and sees the sell-off as bringing GME's valuation back to an attractive entry point.
- The investment firm did reign in its lofty price target a bit, reducing it to $52 from $58.
GameStop defended after share meltdown
Jan 15 2014, 10:41 ET