While other analysts have been singing praises for GameStop and maintaining "buy" ratings for the retailer's shares, Wedbush Morgan's Michael Pachter had been reiterating a "hold" rating.

"Maybe we just don't get it," he said in a late August investor note.

But on Monday, he finally fell in line with fellow analysts in an investor note subtitled, "Enough is enough," and upgraded the stock from "hold" to "buy."

"We believe that the company is well positioned to continue its dramatic earnings growth for at least the next two years," Pachter said.

He also lowered the share price target to $43.50 from $46.50 to reflect slowing comp store growth and a valuation closer to other specialty retailers.

The analyst said previously he was concerned about what he perceived as slight loss of market share and relatively low same-store growth rate, saying GameStop was "somewhat cavalier" about the issues.

In August, GameStop reported $1.8 billion in sales and a 162 percent earnings increase for fiscal Q2.

Pachter said he expects supply and demand of consoles to strike a balance, and that GameStop will lose some hardware market share to mass merchants.

But he explained, "This is not a function of poor performance by GameStop; rather, we believe that it is a reflection of GameStop’s business model, where the retailer is a preferred destination for 'new stuff.'"

He added that a shift from low margin hardware sales to high margin new and used game sales will drive operating margins during fiscal 2009.

GameStop shares were down $1.05, or 3 percent to $35.11 in morning trading amidst fears of slowing game sales during the holidays.