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Fly News Breaks for May 16, 2018
GME
May 16, 2018 | 12:19 EDT
Loop Capital analyst Anthony Chukumba notes that according to CNBC, hedge fund Tiger Global Management sent a letter to GameStop's board of directors urging the company to launch a strategic review in the wake of recent senior management departures. The analyst is "not terribly surprised" to see one of GameStop's shareholders become more vocal given the recent underperformance and senior management turnover. While he is unclear whether there would be any takers for the struggling Technology Brands and views Gamestop's International operations as a core business, Chukumba believes many of Tiger Global's demands make sense. Nonetheless, the analyst is not confident Tiger Global's letter will result in significant shareholder value creation given the fact the fund has a relatively small position in GameStop. He reiterates a Hold rating and $14 price target on the shares.
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