Written by Brenda Nakalema

GameStop stock slipping again as Analyst cuts price target.

On Wednesday, GameStop stock price fell again after an analyst cut her price target for the videogame retailer. An analyst …

On Wednesday, GameStop stock price fell again after an analyst cut her price target for the videogame retailer. An analyst at Jefferies, Stephanie Wissink, slashed her GameStop (ticker: GME) price target from $180 to $145, sighting limited visibility into the financial impact of changes the retailer is currently undergoing. She ended by rating GameStop stock at Hold, yet the two other analysts who cover the stock have it at a Sell rating. Wissink’s new price target still implies a 12% upside from recent levels.

Wissink asserted that the longer the new leadership takes to release new information, the more anticipation builds thus affecting the stock price. “But at some point, we worry the individual investor will grow restless,” said Wissink.

GameStop stock fell 0.8% to $129.22 by Wednesday afternoon trading. The S&P 500 index had rallied 0.2%. Overall, GameStop stock is down 13% year–to–date, but up 312% from a year ago- just before its much-known rally kicked off in January 2021.

While Wissink expresses intrigue at the company’s reported plans to embrace Non-fungible tokens, she still feels like it’s difficult to place a valuation on the project due to the company’s lack of solid announcements. The company has hired crypto and blockchain experts and has posted a call for creators for its NFT project. Other analysts have loosely likened the company to a venture capitalist firm due to the risks and potential rewards inherent in such a drastic pivot.

“As noted above, while all these elements are intriguing as a consideration set to recast the revenue model, we lack the depth of detail to fully form reasonable estimates, and as such, we’re applying a slightly steeper visibility discount to our PT,” Wissink wrote.

Last March, she raised her price target from $15 to $175, sighting Ryan Cohen’s ambitious investment and the potential for the Chewy co-founder to help the company transition to e-commerce. Cohen eventually became the chairman in the midst of a larger management shakeup.