Goldman Sachs Neutral On Gamestop

Goldman Sachs has a Neutral rating and a $26 price target on shares of Gamestop GME. In a note to clients, Goldman writes, "We continue to expect overall industry sales to decline (7%) in 2011, including a (5%) decline in software sales, which stands below GME's high-single-digit growth expectation. Today's release reinforces our view that the lack of a console cycle will continue to pressure the sector, though in fairness it also likely reflects broader challenges recently observed across other discretionary categories." Shares of GME closed at $26.25 yesterday.