GameStop Analyst Says Retailer Could Close All Stores, Operate As Bank To Manage Losses
Portfolio Pulse from Chris Katje
Wedbush analyst Michael Pachter reiterated an Underperform rating on GameStop (NYSE:GME), lowering the price target from $11 to $10. Pachter questions GameStop's premium trading price relative to its cash reserves, citing a lack of strategic direction and potential store closures. The analyst suggests GameStop could operate as a bank to manage losses, given the challenges of digital game sales and declining hardware sales.
September 11, 2024 | 3:14 pm
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Wedbush analyst Michael Pachter has reiterated an Underperform rating on GameStop, lowering the price target to $10. The analyst questions the company's premium trading price and suggests a lack of strategic direction, with potential store closures impacting revenue and profitability.
The analyst's Underperform rating and lowered price target reflect skepticism about GameStop's strategic direction and financial health. The suggestion to close stores and operate as a bank indicates significant operational challenges. The stock's premium price relative to cash reserves is seen as unjustified, leading to a negative short-term impact on the stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100