UPDATE: Ascendiant Capital Raises PT on GameStop Following E3

In a report published Wednesday, Ascendiant Capital analyst Edward Woo reiterated a Buy rating on GameStop (NYSE: GME), and raised the price target from $44.00 to $46.00.

In the report, Ascendiant Capital noted, “The major video game industry convention E3 took place last week in Los Angeles. The main focus of the event was the upcoming new video game consoles from Sony (PS4) and Microsoft (Xbox One). Both are expected to be released in November and to drive renewed interest and sales for the video game industry. Both the PS4 and Xbox One use a physical media and allow the ability to play used games. While the exact details for playing used games on the Xbox One remain unclear, we believe that it will likely be similar to the process for used games for the Xbox 360. Microsoft generated significant negative feedback from its potential restrictions on used games and on its requirement for daily Internet connectivity. Because the PS4 does not have the same restrictions, we believe Microsoft will have to match Sony's or risk lower sales.”

GameStop closed on Tuesday at $38.46.