8:12 (Dow Jones) Goldman Sachs upgrades GameStop (GME:$23.47,00$0.45,001.95%) to conviction buy from neutral, citing valuation and saying "earnings expectations, for a long time aggressive, are now beatable, in our view." Firm also sees "a powerful cash flow story emerging as GME nears paying off its remaining debt and could turn to buying back shares." Goldman also thinks "secular concerns" about the business are overblown.

also..

GameStop: Goldman Upgrades To Conviction Buy

Posted by Eric Savitz

Goldman Sachs analyst Robert Higginbotham this morning raised his rating on GameStop (GME) to Buy from Neutral on a valuation basis, asserting that earnings expectations “for a long time aggressive, are now beatable.”

Hiiginbotham also writes in a research note that there is “a powerful cash flow story emerging as GME nears paying off its remaining debt and could turn to buying back shares.” Not least, he thinks secular concerns around the business are “overblown,” asserting that digital downloading “is not an existential threat as current console games are too big to download, and the used business has significant barriers to entry.”

The Goldman analyst raised his 2009 EPS estimate to $2.57, from $2.52. For 2010, he goes to $2.91, from $2.68. And for 2011, he now sees $2.82, up from $2.55.

He set a price target on the stock of $28.

more info: http://blogs.barrons.com/techtraderdaily/2009/08/31/gamestop-goldman-upgrades-to-conviction-buy/