Benchmark maintains Take-Two stock rating on GTA VI growth potential

Published 20/06/2025, 12:56
Benchmark maintains Take-Two stock rating on GTA VI growth potential

Investing.com - Benchmark reiterated its Buy rating and $250.00 price target on Take-Two Interactive (NASDAQ:TTWO) stock, citing Grand Theft Auto VI as a multi-year growth catalyst. The stock, currently trading near its 52-week high of $242.09, has delivered an impressive 53.89% return over the past year. According to InvestingPro analysis, the company appears to be trading above its Fair Value.

The research firm expects GTA VI to follow the successful long-tail model of its predecessor, GTA V, which has sold more than 215 million units over a decade of monetization. The upcoming title is scheduled for release on May 26, 2026, arriving late in the current console cycle.

Benchmark anticipates a phased release strategy, with GTA VI launching first on PlayStation 5 and Xbox Series X|S, followed by enhanced versions for next-generation consoles and PC. The firm highlighted the PC market as particularly significant due to its global installed base, digital attach rates, and modding culture that has supported engagement in previous Rockstar titles.

A version for Nintendo’s Switch 2 is considered possible but "very unlikely" by the research firm, despite the new console’s record 3.5 million unit launch and growing premium third-party catalog.

Benchmark predicts Rockstar will launch GTA Online 2 as a separate live service six to twelve months after the base game’s release, potentially creating a "multi-billion-dollar recurring revenue stream" based on the original GTA Online’s decade-long success. With analysts maintaining a strong buy consensus, investors seeking deeper insights into Take-Two’s growth potential can access comprehensive analysis and additional ProTips through InvestingPro.

In other recent news, Take-Two Interactive has announced a major financial move with a public offering of 4,750,000 shares priced at $225 each, potentially raising up to $1.19 billion if underwriters fully exercise their purchase option. This offering is intended to support general corporate purposes, including repaying outstanding debt and financing future acquisitions. Simultaneously, S&P Global Ratings revised Take-Two’s outlook to stable from negative, following the company’s issuance of $1.19 billion in equity aimed at reducing leverage, which has been above the downgrade threshold since the acquisition of Zynga (NASDAQ:ZNGA). The company’s leverage is expected to drop below 2x by the end of fiscal 2026 and further below 1x early in fiscal 2027 after the release of Grand Theft Auto VI.

Additionally, Jefferies has reiterated its buy rating on Take-Two’s stock, maintaining a price target of $270, noting the company’s strategic approach toward AI and its impact on game development. Take-Two’s recent developments also include a commitment to maintaining the current GTA V Online alongside the upcoming GTA VI, indicating a dual strategy for its popular franchise. The announcement of GTA VI’s release date on May 26, 2026, has generated significant anticipation, with the second trailer setting a record for views, suggesting strong future sales potential. These developments reflect Take-Two’s strategic financial planning and product roadmap as it navigates the evolving interactive entertainment landscape.

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