GameStop Price Target Raised To $175 From $15 At Jefferies

Signal, Gamer Zone, Area Players, Signaling

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Jefferies analyst Stephanie Wissink raised the firm's price target on GameStop (GME) to $175 from $15 and keeps a Hold rating on the shares, telling investors that the company's Q4 results "reflected the directional changes underway in the business model," highlighting that comp sales were up 6.5% and e-commerce sales were up 175%.

Digital sales accounted for 34% of sales in Q4 and 30% overall in 2020, points out Wissink, who is recasting her GameStop model and valuation for the additional shift toward e-commerce and digital and affiliated value streams.

The analyst, who expects store closures to persist and sales to transfer to dot-com, thinks total revenues may come down, but the value per dollar of sales "should increase if non-retail streams are realized."

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William K. 3 weeks ago Member's comment

Raising a "price target" over 11 time the current price is an interesting action. Certainly optomistic, and probably rather bold. But what does it do for me? and why should I think that it has any credibility?