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Video-game Stocks Have Limited Upside For Now, Lehman Says

High valuations and the slower sales of next- generation platforms will temper the share-price growth of video-game publishers despite a strong long-term outlook, according to an analysis Monday from Lehman Bros..

The broker started coverage of the video-game sector with a neutral rating. In a report, analyst Eric Handler noted that the market is growing, with new gamers attracted by "interesting hardware choices" that are driving "greater creativity" among video-game publishers.

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