Bank of America: Downgraded GameStop (GME.US) to "Sell" and maintained target price of $10

智通财经网2021-04-27

Zhitong Finance APP learned that,Bank of AmericaAnalyst Curtis Nagle willGameStop(GME.US) lowered its target price to $10 and maintained a "sell" rating. It is reported that after GameStop's stock price tripled last year, the year-to-date increase is still more than 7 times. With the abnormal increase in stock prices, many company executives have also benefited a lot.

Executive option cashouts will also weigh on the company's prospects. It is reported that the company's current CEO, the company's former chief financial officer and sales executive hold stock options of US $169 million, US $33.5 million and US $42.6 million respectively. If they are cashed in the near future, the total amount will exceed US $290 million.

Nagle said: "Although the new executives in the company's management have experience in the digital and e-commerce industries, this is still a long way from the company's profitability."

Analysts generally hold a negative view on the prospects of GameStop (GME.US), with a total of 4 "sell" ratings, an average target price of $53.8, and a potential downside of 66%.

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Comments

  • PaulMardling
    2021-05-06
    PaulMardling
    There is more than $7/share that is just cash in the bank, the institution pushing this rating seems to have an agenda, not suspect at all….
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