GameStop cut to underperform at Telsey, though stock still soaring

• GameStop (NYSE:GME) earlier cut to underperform from outperform at Telsey, writing that the current share price and valuation levels are not sustainable. GameStop shares surging 40% today after a 51% climb on Friday.
• GameStop shares likely to return to a "more normal/fair valuation" driven by fundamental after the shares gained 970% since Telsey's upgrade in September, according to Telsey analyst Joseph Feldman.
• PT raised to $33 from $22.
• • "The sudden, sharp surge in GameStop's share price and valuation likely has been fueled by a short squeeze, given the high short interest (still +100%), and, to a lesser degree, speculation by retail investors on forecasts for the new gaming cycle and the involvement of activist RC Ventures."
• GameStop trading at ~33x EV/EBITDA, well ahead of many retailers and its 10-year avg. of ~4.0x and 10-year peak of ~7.0x.
• Recall Friday, Highly shorted GameStop, Bed Bath, AMC soar as Reddit users promote.