Pedestrians pass a GameStop store in New York.
Scott Mlyn | CNBC
Mizuho initiated coverage of GameStop shares with a buy rating, saying the video game retailer will benefit from a moderating shift to digital game downloads from physical game sales.
"We believe GME's current price does not adequately reflect the company's operating performance, business prospects and track record of returning shareholder value," analyst San Phan wrote in a note to clients Thursday.
"We believe physical console game discs will not disappear anytime soon and the digital shift will be a longer runway than widely believed. In the meantime, we see GameStop continuing to gain share in VG sales at retail."
