GameStop reported Q4 results below expectations, driven by weakness in pre-owned revenue and margins consistent with the holiday sales report, Baird analyst Colin Sebastian tells investors in a research note titled "Turnaround Plan Still Under Wraps; Lowering Estimates." Despite a "deep value opportunity" in the shares, GameStop's "cloudy" near-term and longer-term outlooks "warrant ongoing caution," adds the analyst. He lowered his price target for the shares to $11 from $12 and keeps a Neutral rating on the name. Sebastian, however, is encouraged by GameStop's "more flexible" capital allocation strategy and expected focus of the new CEO on operational efficiency.