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Tuesday, analysts at Baird increased their price target on Take-Two Interactive (NASDAQ:TTWO) shares to $210 from the previous $181, while reaffirming an Outperform rating on the stock. The revision comes in anticipation of the upcoming release of Grand Theft Auto VI (GTA VI), which is expected to significantly impact the company's financial performance. Currently trading at $186.41, TTWO has shown strong momentum with a 24% gain over the past six months. InvestingPro analysis reveals the stock is trading near its 52-week high of $192.14, with analyst targets ranging from $130 to $240.
According to Baird, Take-Two's robust game pipeline, which is nearing its launch phase, has prompted the firm to adjust its price target and roll out its fiscal year 2027 estimates. These projections include net bookings of $8.2 billion, marking a 3% year-over-year increase following a surge of over 40% growth in fiscal year 2026. Additionally, non-GAAP earnings per share (EPS) are expected to approach $9.00. With current annual revenue of $5.46 billion and a market capitalization of $32.74 billion, Take-Two shows significant growth potential. Dive deeper into Take-Two's financial health with InvestingPro, which offers comprehensive analysis and 12 additional ProTips for informed investment decisions.
The analyst highlighted the potential of GTA VI to sell between 25 and 30 million units in its launch quarter, assuming a retail price point of $59 or higher. If the game is released in October, as speculated, it could lead to 35-40 million units sold in fiscal year 2026. The analyst also pointed to the potential for sustained high revenue from recurring streams, a stabilizing portfolio from Zynga (NASDAQ:ZNGA), and upcoming releases such as the next BioShock or Max Payne titles.
Baird suggests that short-term catalysts for Take-Two's stock could include the next GTA VI trailer, a formal launch date announcement, and initial fiscal year 2026 guidance. These factors are expected to draw significant attention from investors and could influence the company's stock performance in the near future.
In other recent news, Take-Two Interactive has been the focus of various financial analysts. Stifel has increased Take-Two's stock price target to $223, reflecting confidence in the company's development schedule and its potential impact on future financial results. BMO Capital Markets has also reiterated its Outperform rating on Take-Two shares, raising the price target to $240, largely based on the anticipation of robust sales for the upcoming Grand Theft Auto VI. TD Cowen expressed similar confidence, increasing the stock's price target from $176 to $211, citing the potential of GTA VI's online mode.
However, Bank of America voiced concerns about Take-Two's mobile guidance for fiscal year 2025, pointing to a potential risk due to a 1% quarter-over-quarter decline in in-app purchases. Despite this, Roth/MKM analysts raised the company's stock target by $26, reflecting expectations of increased bookings and earnings per share starting in 2025.
These are some of the recent developments for Take-Two Interactive, which is planning several major title launches in 2025, including Civilization VII, Borderlands 4, and Mafia: The Old Country. The company's management has hinted at new growth opportunities that could enhance its business model and financial outlook.
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