GameStop results ‘disappointing,’ underscore challenges, says Baird

Baird says GameStop’s “disappointing” Q4 results underscore ongoing challenges to the company’s retail business model. The analyst has limited confidence in GameStop’s ability to restore growth and drive further operating efficiency. However, a smaller store footprint with a modernized consumer experience “could eventually find an equilibrium point,” the analyst tells investors in a research note. The firm expects stock bulls to point to new hardware and expected release of GTA 6 next year as upcoming catalysts. However, with management providing limited information and with ongoing business model concerns, “we cannot recommend buying the stock at these levels,” Baird contends. It keeps the shares as not rated.