Piper Jaffray Reiterates Underweight on GameStop (GME)

Piper Jaffray is out with its report today on GameStop GME, reiterating Underweight. In a note to clients, Piper Jaffray writes, "GameStop will report January quarter financial results on Thursday morning 3/24/11. We expect GameStop will report sales and EPS in-line with its January quarter holiday update. Management guidance calls for comps to range 2% to 4% and EPS between $1.53 & $1.59 for the quarter. We believe guidance was slightly conservative and EPS can hit the top end of guidance or slightly better ($1.61 PJC est). We think risk exists to 2011 consensus estimates ($2.92 EPS) and believe net income will decline modestly during 2011. GameStop continues to execute well in a tough category - but long-term strategy is lacking. Reiterate Underweight rating and $17PT." Shares of GME closed Monday at $21.19, up 1.10% from Friday's close.