Wedbush Downgrades GameStop To Sell With $29 Price Target

Signal, Gamer Zone, Area Players, Signaling

Image Source: Pixabay

Wedbush analyst Michael Pachter downgraded GameStop (GME) to Underperform from Neutral with a price target of $29, up from $16, following last night's Q4 report.

The stock in premarket trading is down 14% to $156.70.

The results fell below expectations due to COVID-19 mandated closures, shipping constraints during the holidays, and severe supply limitations of new generation consoles, Pachter tells investors in a research note. The analyst believes GameStop is well-positioned to be a primary beneficiary of the new console launches, and he remains "quite optimistic" that it will return to profitability by the end of fiscal 2021.

However, the "high-profile sustained short squeeze" has spiked the share price to levels that are "completely disconnected from the fundamentals of the business," says Pachter.

 

Disclaimer: TheFly's news is intended for informational purposes only and does not claim to be actionable for investment decisions. Read more at  more

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
William K. 2 weeks ago Member's comment

Confusion here because a second analyst sets a price target of $29. The appearance is that they are not on the same page, maybe not even in the same book. Evidently the "price target" is rather volatile presently.

Katy Lin 2 weeks ago Member's comment

HFS shorted the entire Russell 2000, or in other words, every single ETF with $GME in it!

See: charts.stocktwits.com/.../original_307686362.png