Oppenheimer Keeps Optimistic View of GameStop Corp. Following the E3 Video Game Expo
Oppenheimer analyst Brian Nagel offered a few insights on GameStop Corp. (NYSE:GME) after attending the E3 video game expo in Los Angeles. The analyst reiterated an Outperform rating on GameStop with a price target of $45. Shares of GME closed yesterday at $42.51, down $0.01, or 0.02%.
Nagel noted, “For some time we have looked favorably upon nearer-term prospects for GameStop (GME). In our view, GME is very well run and uniquely positioned to capitalize upon a strengthening New Gaming Cycle. We came away from E3 and our conversations with myriad industry executives incrementally more positive towards the nearer-term outlook for GME, but also a bit more concerned towards longer-term prospects for the chain. In our view, the new gaming cycle is reaching a “demand sweet spot.”
“Publishers, however, seem increasingly enamored with the longer-term profit and return potential of full game downloads and focusing upon blockbustertype titles. Over the next couple of quarters, we expect short-covering to continue to underpin a further grind higher in GME shares.”, the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian Nagel has a total average return of 10.7% and a 69.1% success rate. Nagel has a 5.7% average return when recommending GME, and is ranked #193 out of 3629 analysts.
Out of the 15 analysts polled by TipRanks, 12 rate GameStop stock a Buy, while 3 rate the stock a Hold. With a return potential of 13.69%, the stock’s consensus target price stands at $48.33.