Goldman Sachs Maintains GameStop Rating On 2011 Concerns

Despite what appears to be a strong start to Kinect sales in 4Q, continued share gains in new software, and progress on digital, Goldman Sachs said that it maintains its Neutral rating on GameStop Corporation GME shares, “as the used segment remains challenged and we stand well below the Street in 2011.” “Our lackluster 2011 forecast stems from our assumption for meaningful industry sales declines, given the lack of visibility into the next console cycle, which will make it difficult for the company to grow earnings, though we expect share repurchases to allow for modest EPS growth,” Goldman Sachs writes. GameStop currently trades at $20.40.