GameStop Stock Looks Unstoppable, Analysts Eyeing $50
GameStop (NASDAQ: GME) stock price rallied more than 70% in the last two days alone and the short squeeze is officially on the stock.
Shares are rallying at an eye-popping pace amid the digital transformation plan and a massive level of changes at the board of directors. The short squeeze also helped the stock to hit a new all-time high of $43 in Thursday trading. Shares of GameStop are now up 135% in the last month, pushing a six months surge to over 635%.
Analysts Expect Gamestop Stock to Hit $50
The market analysts are optimistic that the transformational plan would take the company to new highs in the years to come because online sales growth trends have been exceeding physical store sales when it comes to the gaming industry.
Cohen’s RC Ventures urged in a November letter to GameStop that the management should change the business model to serve more online users instead of focusing on sales at stores.
“GameStop needs to evolve into a technology company that delights gamers and delivers exceptional digital experiences – not remain a video game retailer that over prioritizes its brick-and-mortar footprint and stumbles around the online ecosystem,”
GameStop has officially struck a deal with RC Ventures for the transformation. According to the deal, Alan Attal, Ryan Cohen, and Jim Grube are appointed as directors.
The market analysts have appreciated the change in the business strategy as well as the appointment of new directors to the board.
“The new reconfiguration of GameStop’s board is important as it now has three veterans from Chewy.com, which suggests to it an acceleration of the company’s digital transformation plan,”
Hedgeye added GameStop to the best ideas list. Its analyst Brian McGough said,
“If the company can execute a turnaround strategy to make GameStop the leading store and online destination for the gaming community, you could have stock at $50+.”