STOCKS NEWS EUROPE-Game up; Seymour Pierce says "buy"

Shares in Game Group (GMG.L), the specialist video game retailer, rise 3 percent as Seymour Pierce repeats its "buy" rating on valuation grounds and says the company could be a potential target for U.S. peer GameStop (GME.N).

"Game Group is, in our view, a likely target for GameStop, which is more highly rated, 7 times larger in market capitalization terms and has little overlap with Game Group in Europe," says the broker.

Seymour Pierce also notes the stock has underperformed the market by almost 30 percent over the last year, and says it "is too lowly rated on our forecasts at 6.9 times 2009/10 estimates and a dividend, well covered, yielding almost 4 times".

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