GameStop Climbs to Highest Since 2009 on New Console Outlook
GameStop Corp. (GME), the world’s largest video-game retailer, rose to its highest level since 2009 after analysts predicted that sales will increase as console makers introduce new models this year.
The shares advanced 6.4 percent to $29.76 at the close in New York, the highest closing price for Grapevine, Texas-based GameStop since April 30, 2009.
A new version of Microsoft Corp.’s (MSFT) Xbox console and the introduction of Sony Corp. (6758)’s PlayStation 4 will lift GameStop’s sales later this year and in 2014, Edward Woo, an analyst with Ascendiant Capital Markets LLC, said today in a note to investors. Woo, who is based in Irvine, California, boosted his price target on the shares to $34 from $29.
“The new core gaming consoles by Microsoft and Sony will drive consumer interest and demand for video games over the next several years,” wrote Woo, who has a buy rating on the shares.
Tony Wible, at Janney Montgomery Scott, wrote in a note today that GameStop is likely to gain market share because the new consoles will increase demand for games. Wible, based in Philadelphia, reccomends investors buy the shares.
Last month, GameStop reported fourth-quarter profit that beat analysts’ estimates, led by digital and mobile products. The retailer said the second half of the year is expected to be “strong” with the release of the “Grand Theft Auto V” game and at least one new console.
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