GameStop News: Why GME Stock Is on Watch Today

In the latest GameStop news (NYSE:GME), the company’s stock is on watch today ahead of what could be a game-changing month for the video game retailer this coming February.

GameStop News
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Bank of America Merrill Lynch announced on a note that it has kept its price target of $16 on the retailer as the latter gears up to report its fourth-quarter earnings results for its fiscal 2018 in early February. This price target is roughly eight times the fiscal 2019 earnings per share estimate from the firm’s analyst team, according to Seeking Alpha.

“We believe GME deserves to trade at a discount to its five year average of 9x given high exposure to the structurally-challenged new gaming business and increasing market competition in its non-gaming segments,” the firm adds. This isn’t the only GameStop news making the rounds this week as the company may be closer to selling itself due to the increase in popularity in digital game sales, which has negatively impacted physical video games.

The retailer said last June that it was considering the option of selling itself to another company, with a deal expected to come sooner rather than later. The Wall Street Journal wrote that there are at least two companies that have placed bids on GameStop, with an agreement to buy the retailer possibly arriving by mid-February. A person familiar with with the matter told WSJ that private equity companies Sycamore Partners and Apollo Global Management may be interested in buying GameStop.

GME stock is sliding a fraction of a percentage on Thursday.


Article printed from InvestorPlace Media, https://investorplace.com/2019/01/gamestop-news-gme-stock/.

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