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GameStop has been left out of retail's recent turnaround.
Jefferies sees an opportunity for the struggling video-game chain to resurrect itself by not focusing on games.
Stock - Chain - Consoles - Community - Gamers
The stock could hit $18 if the chain instead focuses on selling consoles and creating a community of gamers, the firm said.
Follow GameStop's stock price in real-time here.
GameStop - Analyst - Valuation - Elements - Chain
GameStop may be struggling, but one analyst says the "deeply discounted valuation" is missing some key elements to the chain's potential.
Jefferies initiated research coverage of the stock Monday with a surprisingly bullish outlook. The firm told clients it could reach $18 in the next year — 18% above Friday's closing price of $15 — by focusing on consoles and community rather than on games.
Game - Publishers - Players - Incl - Transactions
"Game publishers are disintermediating retail, going direct to players through downloadable content incl. major & micro transactions and expansion packs," analyst Stephanie Wissink said in a note. "By reducing dependence on software and instead managing the model to existing advantages in hardware & peripherals, content & community (37M in CRM), and opportunity areas digital, tech, & collectibles, we see GME evolving from a purveyor of packaged media toward a hub for gamer connections, platform & accessory purchases, and fan culture...
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