Wedbush Adds GameStop to Focus List
Wedbush Morgan added GameStop (GME ) to its focus list.
The online video-game software and hardware retailer posted 11 cents second-quarter earnings per share. Analyst Michael Pachter says he sees high probability that Sony will take steps to significantly increase its sales of Playstation 2 over the next several weeks. He expects GameStop to be a key beneficiary of such action. Pachter says, because GameStop has tempered investor expectations on whether Sony will hit its sales targets for the year, so he thinks any such promotional activity will serve as a catalyst for GameStop shares.
Pachter upped the $1.579 billion fiscal 2004 (Jan.) revenue estimate to $1.6B, and raised the $1.758 billion fiscal 2005 estimate to $1.8 billion. However, he's keeping the $1.09 fiscal 2004 earnings per share and $1.27 fiscal 2005 earnings per share estimates. He also maintains his buy rating, and has a $22, 12-month target.