The Zhitong Finance App learned that Bank of America analyst Curtis Nagle raised the target price of GME.US (GME.US) from $1.6 to $10, reiterated the “outperform the market” rating, and said that the company's performance pressure would return its stock price to match fundamentals.

Nagle pointed out that although Game Station's performance has been very weak over the years, its stock price has risen 642% since January 12 this year. The reason behind the sharp rise was the large-scale shorting market described in media reports and the extreme buying enthusiasm of retail investors. The analyst believes that with the help of new board member Ryan Cohen, people may think that the company can reverse the decline, but this is not enough to offset the structural pressure that may accelerate in the console cycle.

Nagle remains skeptical about the potential of gaming sites to reverse their decline, and believes that fundamental factors will influence the company's valuation at some point. He said that under the impetus of the epidemic, the online sales growth rate of game stations increased from 10% to 30%, but the higher online/offline sales ratio was not beneficial to the company's profitability. As in-store transactions shift to online transactions, it will be difficult for game sites to sell their highly profitable used products and collectibles. These products accounted for 46% of the company's gross profit in 2019.