Calling Gamestop's guidance "conservative" and citing valuation, Wedbush Morgan senior analyst Michael Pachter raised his rating and price target for Gamestop to $34 and "Outperform".

"We expect industry sales to return to positive territory in September, and think that GameStop is well positioned to recover as well. "

Gamestop is up around 3% this morning.

Pachter is also expecting 21% overall console and software sales growth for September.