Is it "transformation" that's "hiding in plain sight" as StoneX analyst Mike Hickey believes or is it simply a meme-stock mirage?

That's the question with Ryan Cohen's GameStop. Hickey, who earlier this month initiated GameStop with a Buy rating and a $33 price target, believes the evolution of card collecting is a cornerstone of sustainable growth for the company.

GameStop, of meme-stock fame, doesn't have many Wall Street firms weighing in on its business or the stock. FactSet tracks just two firms covering the stock. One of those firms is StoneX.

Hickey in early November said in a research note that Cohen has rebuilt the earnings base with collectibles offering a path to sustained growth and cash generation that supports expansion.

"GameStop's transformation is hiding in plain sight, with its meme-stock heritage overshadowing Ryan Cohen's operating achievements and the company's scale, growth and earnings potential," Hickey said.

The analyst on Monday expanded on this view and outlined how the evolving landscape of how consumers collect and trade cards is key to GameStop's growth potential.

GameStop has been working to cash in on the U.S. collectibles market, which is expected to surpass $100 billion by 2033. Collectibles and trading cards already provided a bright spot in GameStop's fiscal second quarter earnings ended Aug. 1.

Hickey believes there's significant growth potential for GameStop on the back of "power packs"or digital packs of sports cards, Pokémon, and others that can be purchased, earned, and opened digitally.

Part of this strategy is with hybrid digital card packs that include physical "releases." That means the virtual card packs also include real tangible cards.

"Power packs are becoming a broader growth opportunity for GameStop," Hickey said in the research note Monday.

The analyst added that the possibility for broader app distribution and live-commerce are "potentially significant catalysts for an already rapidly expanding product category."

GameStop currently offers digital power packs through its website and app with customers choosing a category and price tier, starting at $25 for cards.

GameStop's trading cards are "professional sports authenticator," or PSA-graded, and enter the PSA vault where customers can hold, ship or sell them.

This adds a layer of earnings potential, according to Hickey, to GameStop's physical collectible and trading cards, and allows for a business framework where cards can be returned to inventory for resale, "creating additional transactions from the same collectible."

"Attractive sourcing and repeated inventory turnover underpin the commercial opportunity," Hickey said.

GameStop shares fell 1% to $24.88 in premarket trading on Monday after ending Friday up 3.9%. The stock, as of premarket session, had risen 24% this year and was on pace for its best yearly performance since 2024.