GameStop shares climb to three-year high
Retailer's stock value highest since 2009 as profits predicted from next-generation consoles and GTAV sales.
GameStop shares have jumped to a three-year high following analyst predictions that the retailer will see a sales jolt from the arrival of next-generation consoles.
The Grapevine, Texas retailer rose to its highest level since April 2009, closing yesterday up 6.4 percent to $29.76. The stock is doing even better today, up 1.04 percent to $30.07 at press time.
Sterne Agee analyst Arvind Bhatia yesterday issued a note to investors on GameStop predicting an uptick in sales once the PlayStation 4 and potentially the Xbox 720 arrive later this year.
In addition, Bloomberg obtained an investor note from Ascendiant Capital Markets analyst Edward Woo, who echoed Bhatia's comments.
"The new core gaming consoles by Microsoft and Sony will drive consumer interest and demand for video games over the next several years," Woo wrote.
Janney Montgomery Scott analyst Tony Wible, according to Bloomberg, said GameStop will gain further market share once the next-gen platforms arrive.
All three analysts have a "buy" rating for GameStop.
As part of its fourth-quarter and full-year earnings report last week, GameStop said the launch of at least one new console this fall, combined with a blockbuster title in Grand Theft Auto V, will lead to significant growth.