Ascendiant analyst Edward Woo lowered the price target on GameStop Corp. to $23 from $24, implying an 84.9 percent downside, and reiterated a Sell.
“Reddit trading” may rally the shares in the near term, but this will likely fade in 2022 as digital threats increase, given the company’s “weak” earnings outlook, Woo tells.
Recent reports by video game publishers show that digital revenue is increasing fast, Woo adds.
He remains “very concerned” about the long terms prospects of GameStop’s core video game business “once hardware sales temper as the installed base matures.”
GameStop is a U.S. multichannel video game, consumer electronics, and services retailer.
GameStop sells new and second-hand video game hardware, physical and digital video game software, and video game accessories, mainly through GameStop, EB Games, and Micromania stores and international e-commerce sites.
