Credit Suisse anayst Seth Sigman lowered his price for GameStop to $7 from $10 after evaluating the opportunity for the company to improve its profitability and create shareholder value. The analyst believes that GameStop's key loyalty drivers, Pre-owned and Power Up, are under pressure, and that its cost initiatives alone won't be enough to offset that. Sigman envisions bigger changes to its stores and product assortment, but that may take time and require more spending, still leaving forecasts at risk. He reiterates an Underperform rating on the shares.

Bullish option flow detected in GameStop with 44,913 calls trading, 1.9x expected, and implied vol increasing over 3 points to 96.82%. 4/26 weekly 11.5 calls and May-24 12 calls are the most active options, with total volume in those strikes near 7,700 contracts. The Put/Call Ratio is 0.10. Earnings are expected on June 5th.