GameStop rated Strong Buy with $27.68 target on record income, strong cash, and growth in collectibles sales.

GameStop is rated a Strong Buy with a 12-month price target of $27.68, driven by its record Q1 operating income and a robust $8.4 billion cash reserve that covers most of its market cap. The company’s shift towards collectibles, now 42% of sales, is expanding margins and moving away from declining physical game sales. Additional catalysts include a share buyback authorization and potential acquisitions, such as a deal with eBay, which could drive multiple expansion and long-term value creation for investors.