On March 24th, the Jefferies analyst Stephanie Wissink raised her price target on shares of GameStop stock to $175. This massive jump from the company’s old price target of $15 represents a 1,166% increase in price.
In a note, Wissink said she was raising the price target because of GameStop’s move into e-commerce as well as “digital and affiliated value streams.” She said, “with e-com at 30% of sales and already a $1.5B business, growing triple digits, we see a reasonable basis for $3B+ in annual sales in a 2-3 year timeframe.”
The Jefferies (Jefferies Financial Group) is a diversified financial services company that works in investment banking, asset management, and direct investing. According to her LinkedIn account, Wissink has served as the company’s Managing Director since 2017.
The Profit‘s Take:
This is embarrassing for Jefferies. They are pricing GameStop as if the turnaround has already happened. It is much more likely that GameStop will fail. These kinds of reckless recommendations will only result in investor losses in the long-term.