GameStop initiated with "outperform" - update

10/18/07 - Bear Stearns

NEW YORK, October 18 (newratings.com) - Analysts at Bear Stearns initiate coverage of GameStop Corp (GME) with an "outperform" rating. The target price is set to $75.

In a research note published yesterday, the analysts mention that the company is benefiting from the sector’s impressive growth potential, high barriers to entry to its used videogame retail business and an efficient management team. GameStop is expected to gain going forward from rising investment by publishers in Europe, the analysts say. The company’s share price does not fully reflect continued growth in the used game business and the opportunity in international markets, Bear Stearns adds.