Ascendiant: Digitization affects the profit prospects of gaming stations, lowers the target price

$GameStop (GME.US)$ Investment bank Ascendiant released a research report that it maintains the "Sell" rating of Game Station (GME.US) and lowers its target price from US$24 to US$23.

Analyst Edward Woo said that transactions brought by Reddit forums may boost the share price of Game Station in the short term, but the upward momentum may weaken in 2022. Due to the increasing threat of digital trends to the company's business, the company's profit prospects are bleak. The analyst said that recent reports from video game publishers show that digital game revenue is growing rapidly. He is still "very worried" about the long-term prospects of Game Station's core business video games.

Article excerpted from the US Stock Research Agency