As previously reported, Baird analyst Colin Sebastian downgraded GameStop to Neutral from Outperform and cut his price target on the stock to $12 from $18 after the company announced that its board has ended their efforts to sell the company.

He reads the company's comments to mean that GameStop did not receive bids or they were deemed to be unacceptable. While he assumes the board will likely take more aggressive steps to restructure to improve medium- and long-term viability, Sebastian expects shares will remain under significant pressure given uncertainty around the market for physical video game software sales and continued declines in pre-owned segment sales.