Gamestop "buy," target price raised - update

11/16/07 - Janco Partners

NEW YORK, November 16 (newratings.com) - Analyst Mike Hickey of Janco Partners reiterates his "buy" rating on Gamestop Corp (GME). The target price has been raised from $57 to $68.

In a research note published this morning, the analyst mentions that the company’s used game segment is expected to benefit in the holiday season. Gamestop’s financial performance is likely to continue to be robust going forward, aided by price reductions in next-generation consoles, market share gains, gross margin expansion and new store openings, the analyst adds. The company is expected to meet its F3Q07 same-store sales growth guidance of 30%-32% and EPS of $0.19-$0.21, in view of the robust trends in the video game industry, Janco Partners says.