NEW YORK (TheStreet) -- GameStop (GME) rebounded 6.7% at 3:13 p.m. on Friday after Sterne Agee remained optimistic about the video game retailer in the wake of its weaker-than-expected fourth-quarter results.
GameStop reported results and issued full-year guidance for 2014 that were below analysts' expectations, but Sterne Agee said the company's outlook is positive because of strong sales of new video game consoles.
The firm believes GameStop's earnings per share could reach $4 in 2014. Sterne Agee noted the company's EPS guidance was in line with analysts' expectations after buyback adjustments. The firm maintained its $52 target price and "buy" rating.
"We expect investor skepticism towards GME to fade as the industry begins to grow again later this year," the firm's research note reads. "GME's upcoming investor day (4/21) and E3 (6/10-6-12) could be potential near-term catalysts."
Separately, TheStreet Ratings team rates GAMESTOP CORP as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate GAMESTOP CORP (GME) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, reasonable valuation levels, good cash flow from operations and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins."