GameStop price target raised to $13.50 from $11.50 at Wedbush

Wedbush analyst Michael Pachter raised the firm’s price target on GameStop (GME) to $13.50 from $11.50 and keeps an Underperform rating on the shares. The firm notes GameStop announced the pricing of its offering of $1.3B convertible senior notes, and will be using the net proceeds from the offering for general corporate purposes, including the purchase of Bitcoin, in line with its recent investment policy update. Wedbush finds it hard to understand why any investor would be paying more than 2 times cash value for the potential for GameStop to convert that cash into Bitcoin, particularly since the same investors can invest in Bitcoin or a Bitcoin ETF themselves.