Smith Barney Citigroup analyst Jill Krutick has upgraded North American retail chain GameStop’s investment rating from hold to buy. According to Krutick: "Video games have the best momentum and are gaining share of consumer spending, which may continue into the first half of 2005."
"Shares are up over 25 percent so far this year," Krutick continued. "We believe as the industry continues to gain share of consumer wallets ... GameStop will be a disproportionate beneficiary."
The chain recently reported a sales increase of 28 percent, and as a result of this and the investment upgrade, the company’s shares have continued to rise since Wednesday.