Retailer GameStop has seen its shares take a noticeable tumble today following UBS analyst Ben Schachter's downgrading of the company stock from 'buy' to 'neutral', following a year-long rise that has nearly doubled share values.
Retailer GameStop has seen its shares take a noticeable tumble today following UBS analyst Ben Schachter 's downgrading of the company stock from 'buy' to 'neutral', following a year-long rise that has nearly doubled share values. According to an AP report, Schachter lowered the rating after saying the company would struggle to "exceed investors' expectations in the next few quarters because there is already so much investor enthusiasm about the video game sector." The article notes that the analyst did, however, raise his price target from $56 to $65 per share, but couldn't justify the buy rating despite the growth. "While strong sentiment, industry momentum and positive near-term catalysts should enable it to reach our price target," Schachter is quoted as saying, "we see limited upside potential from there." In August, GameStop announced record second quarter results with sales up nearly 40 percent to $1.33 billion, thanks to Guitar Hero II and Pokemon, and profits of $21.8 million -- a performance Wedbush Morgan analyst Michael Pachter called "nothing short of stunning".
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