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BofA analyst Curtis Nagle maintains an Underperform rating on GameStop (GME) with a $10 price target after the company announced yesterday that it will be conducting an offering of up to 3.5M shares.

The stock closed Monday up 80c to $186.95.

More cash is "certainly a positive" for GameStop as it gives the company a higher degree of flexibility and it will add to a current cash position of approximately $600M, Nagle tells investors in a research note. However, GameStop is "still a very long way from executing a turnaround," says the analyst. Nagle believes the company's core gaming business is "extremely challenged and losing share at a highly concerning rate."

Further, any progress on transitioning the business is "more than priced into shares," says the analyst.