BMO cuts Take-Two price target to $236, retains Outperform

On Friday, BMO Capital Markets adjusted its price target for Take-Two Interactive Software (ETR:SOWGn), Inc. (NASDAQ:TTWO) shares, bringing it down to $236 from the previous target of $240. Despite the reduction, the firm maintained its Outperform rating on the stock. Currently trading at $219.49, TTWO is near its 52-week high of $238, with analyst targets ranging from $135 to $270. According to InvestingPro analysis, the stock appears to be trading above its Fair Value. This move came after the announcement that the much-anticipated video game Grand Theft Auto VI (GTA VI) will now be released on May 26, 2026, which is approximately a six-month delay from the initially projected release in the fall of 2025.

The delay in GTA VI’s launch has led BMO Capital analysts to revise their financial forecasts for Take-Two. They now estimate that the company will achieve Bookings of $6.2 billion in the fiscal year 2026 (FY26E) and $11.9 billion in fiscal year 2027 (FY27E), a significant change from the previous estimates of $9.2 billion for both years. The company currently generates annual revenue of $5.45 billion, and InvestingPro data shows impressive returns with a 64.37% gain over the past year. For deeper insights into Take-Two’s financial health and growth potential, including 13 additional ProTips, check out the comprehensive Pro Research Report. The shift of nearly $3 billion in GTA VI Bookings from FY26E to FY27E has slightly affected the Discounted Cash Flow (DCF)-based target price.

Despite the lowered price target, BMO Capital continues to stand by Take-Two as a top pick for investors. The firm suggests that the recent pullback in the stock’s price, which is a reaction to the delay of GTA VI, presents a good opportunity for investors to increase their holdings in the company. The analysts believe that the long-term outlook remains positive, and they reiterate their confidence in the stock’s performance. With a market capitalization of $38.82 billion and an overall Financial Health score of FAIR from InvestingPro, the company maintains a moderate debt level and shows strong momentum in the market.

Take-Two Interactive Software, Inc. is a leading developer, publisher, and marketer of interactive entertainment for consumers around the globe. The company is known for its high-quality and critically acclaimed video game franchises, including Grand Theft Auto, which has a strong and dedicated fan base eagerly awaiting the next installment in the series. Despite the setback in the release schedule, the firm’s analysts expect Take-Two to continue to perform well in the market.

In other recent news, Take-Two Interactive Software, Inc. has confirmed a delay in the release of Grand Theft Auto VI, now scheduled for May 26, 2026, shifting the launch from fiscal year 2026 to fiscal year 2027. Despite this delay, the company remains optimistic about achieving record net bookings for fiscal years 2026 and 2027. Analysts from Raymond (NSE:RYMD) James and Citi have maintained their positive outlooks, with Raymond James reiterating an Outperform rating and a $240 price target, while Citi retains a Buy rating with a $260 target. Both firms believe the delay is characteristic of Take-Two’s commitment to quality and suggest that the setback might present a buying opportunity for investors.

DA Davidson also reiterated a Buy rating with a $250 price target, highlighting the success of recent game releases like "NBA 2K25" as a key performance driver. BofA Securities expressed confidence by raising its price target from $210 to $250, citing Take-Two’s strong pipeline, including titles like GTA 6, Borderlands, and Mafia, as a reason for optimism. BofA anticipates that Take-Two will outperform its peers, even if the economy slows down. The company’s upcoming earnings call on May 15, 2025, may provide further insights into its financial outlook and confirm the launch date for GTA 6.

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