The Zhitong Finance App learned that Bank of America continues to be bearish on Gaming Station (GME.US), giving it a “sell” rating, with a target price of $10.

Analyst Curtis Nagle stated, “As we've emphasized many times, the problem with Gaming Station is that its development is out of touch with the company's fundamentals. “The latest console sales figures are not encouraging, which shows that the physical store sales of game stations are still facing huge challenges.”

Nagle added, “Although there are relatively few new-generation consoles released, the total sales volume of physical games seems to be very disappointing. In fact, until now, for every PS5 and Xbox X/s console sold, only 0.65 physical games have been sold. We will continue to monitor this trend, but the decline in physical new game sales may be due in part to the surge in digital game penetration.”

The release of a new generation of game consoles boosted Game Station's hardware sales by 95% in January. At the same time, benefiting from favorable market pricing, sales increased 147%. However, Nagle pointed out that PlayStation/Xbox's sales volume was only 10% of the same period last cycle.

Furthermore, Nagle believes that despite strong “potential” demand, the current “short supply” situation will continue to play a role.

Based on 4 holding ratings and 3 selling ratings, the game site's consensus rating is “sell,” with an average target price of $14.83, which means there is a 72% downside for its stock price over the next 12 months from the current level.