GameStop (GME) received a nice boost in this morning’s trading after Goldman Sachs upgraded the stock to a buy rating over the weekend.
Why the upgrade? According to Goldman’s analyst Brian Karimzad, a strong pipeline of new releases presents a “tactical opportunity” for GameStop and other game retailers. He writes:
GameStop’s share of new U.S. software retail has grown 674 basis points since 2010, including Amazon, via its used business and a shift out of casual games… This will result in greater allocation of new release product by manufacturers like Nintendo.
Among the launches expected to boost sales are the Nintendo Wii-U, and a new Xbox and Playstation in 2013.