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On Friday, Take-Two Interactive (NASDAQ:TTWO)’s stock price target was raised by Benchmark analysts from $225.00 to $250.00, while the firm retained a Buy rating on the shares. This adjustment follows Take-Two’s impressive performance at the close of fiscal year 2025, which was bolstered by solid results from its main franchises and mobile gaming sector. The stock, currently trading at $231.61, has delivered an impressive 59% return over the past year, according to InvestingPro data, though current valuations suggest the stock may be trading above its Fair Value.
The company reported robust sales for NBA 2K25, which sold nearly 10 million units, marking a 7% year-over-year increase compared to NBA 2K24 sales during the same period. A significant growth in recurrent consumer spending, which soared by 14% year-over-year, contributed to 77% of the total net bookings. This increase was largely fueled by the ongoing live services provided for popular titles such as GTA Online and NBA 2K, as well as Zynga (NASDAQ:ZNGA)’s mobile games portfolio. The company’s overall revenue reached $5.63 billion in the last twelve months, with a 5.3% growth rate.
Grand Theft Auto V continues to perform exceptionally well in the market, with over 215 million units sold. The game’s sustained popularity is attributed to the GTA+ subscription service and the FiveM creator tools, which have kept players engaged.
The anticipation surrounding the upcoming Grand Theft Auto VI is palpable. The second trailer for the game achieved a staggering 475 million cross-platform views within the first 24 hours of its release. This figure is more than five times the record-breaking 93 million views that the first trailer garnered on YouTube alone. The overwhelming response to the trailer underscores the Grand Theft Auto franchise’s significant cultural impact and the high expectations for its fiscal 2027 launch.
In other recent news, Take-Two Interactive reported strong fourth-quarter fiscal 2025 results, with revenue reaching $1.58 billion, surpassing the forecast of $1.55 billion. However, the company’s earnings per share (EPS) of $1.08 fell short of the anticipated $1.12. Analysts from Raymond (NSE:RYMD) James, DA Davidson, Jefferies, and JPMorgan have responded positively to the company’s performance, with Raymond James and JPMorgan raising their price targets to $250, while DA Davidson and Jefferies have set targets at $270, maintaining Buy ratings.
Despite the delay of Grand Theft Auto VI, Take-Two has kept investor interest alive through successful titles like NBA 2K25 and mobile games. The company’s guidance for fiscal year 2026 projects net bookings between $5.9 billion and $6.0 billion, with expectations of growth driven by upcoming releases like Mafia: The Old Country and Borderlands 4. Analysts from DA Davidson and Jefferies view the guidance as conservative, suggesting potential for Take-Two to exceed these estimates.
Take-Two’s management remains optimistic about fiscal year 2027, with expectations of achieving over $10.00 in EPS for three consecutive years, supported by the anticipated release of Grand Theft Auto VI. The company’s strategic planning and upcoming game releases are seen as key drivers of its growth potential, according to analysts’ assessments.
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