In a report published Tuesday, Bank of America analyst Curtis Nagle reiterated a Buy rating and $56.00 price target on GameStop (NYSE: GME).
In the report, Bank of America noted, “We reiterate our Buy rating and $56 PO on GME following investor meetings with CFO Robert Lloyd. In all core categories, GME is outperforming the industry versus the prior cycle. In hardware/software /accessories growth over last cycle is +139/103/84% versus +69/26/13% for retail on the whole. We note that 55% of GME's PowerUp members intend to buy a next gen console, signaling a continuation of strong demand for GME. Looking forward, the setup for 2H14 and 2015 is very strong given the sheer number of high quality titles (24 for rest of 2014) coming to market. While it is still very early days, GME sees potential in virtual reality systems, particularly Sony's Morpheus which could launch in 2015.”
GameStop closed on Friday at $42.20.
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