Bank of America Merrill Lynch stays cautious on GameStop (NYSE:GME) after factoring in a NPS report on U.S. software sales falling 17% in March.
"While we had expected a decline in March given that there weren’t any big title launches, the magnitude of the decline is a surprise given a very easy compare -19.5%," observes analyst Curtis Nagle and team.
"We expect another tough year for the traditional (packaged software) video game market in 2019 given that the market continues to move to digital and the title slate is weak this year; our -12% software decline for GME may be optimistic," he adds.
BAML has GameStop rated at Underperform and assigned a price objective of $5.00.
Now read: GameStop Should Not Trade Above $10 »
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