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On Friday, BMO Capital Markets sustained its optimistic stance on Take-Two Interactive Software (ETR:SOWGn) Inc. (NASDAQ:TTWO), maintaining an Outperform rating and a price target of $236.00. Currently trading at $231, Take-Two appears overvalued according to InvestingPro analysis, with the stock trading near its 52-week high of $238. BMO’s endorsement comes in the wake of Take-Two’s solid financial results for the fourth fiscal quarter of 2025, which saw bookings surpassing analyst expectations by 2.5%. The company’s performance, reflected in its 5.31% revenue growth over the last twelve months, was buoyed by the enduring success of the NBA 2K series, which exhibited a remarkable 42% year-over-year growth in recurring consumer spending and a 7% increase in unit sales—a significant achievement for a franchise that has been around for more than two decades.
Take-Two’s guidance for fiscal year 2026 estimates bookings to reach $5.95 billion at the midpoint, a figure that falls approximately 4% short of BMO’s revised projections. This revision followed the announcement of a delay in the release of Grand Theft Auto VI (GTA VI). Despite this setback, BMO reiterated its Outperform rating and target price, citing the company’s "most attractive pipeline in its history." This pipeline is notably headlined by the highly anticipated mega-launch of GTA VI, scheduled for May 2026.
BMO’s analysis underscores Take-Two’s robust performance and potential for growth, driven by its strong game portfolio. The firm’s confidence in Take-Two is further bolstered by the expected release of GTA VI, which is poised to be a major event for the company and the gaming industry at large. The analyst’s commentary highlights the company’s ability to consistently deliver popular and financially successful gaming experiences, even with long-standing franchises.
Take-Two’s financial health and strategic positioning have been reaffirmed by BMO’s assessment, as the company continues to navigate the competitive gaming landscape. The stock has demonstrated strong momentum with a 59% return over the past year, and analysts maintain a bullish consensus. For deeper insights into Take-Two’s valuation and growth prospects, InvestingPro subscribers can access comprehensive financial analysis and 12 additional ProTips that could influence investment decisions.
Investors and industry observers will be keeping a close eye on Take-Two’s progress as it leads up to the launch of GTA VI, which is projected to significantly impact the company’s financial trajectory and market standing. With a market capitalization of $40.81 billion, Take-Two represents a significant player in the gaming industry. BMO’s reiterated rating and price target reflect a vote of confidence in Take-Two’s strategic direction and the enduring appeal of its gaming franchises. For a comprehensive analysis of Take-Two’s potential, explore the detailed Pro Research Report available exclusively on InvestingPro, offering expert insights and actionable intelligence for informed investment decisions.
In other recent news, Take-Two Interactive has garnered attention with its robust financial performance and strategic outlook. The company reported strong fourth-quarter results for fiscal year 2025, with significant contributions from key titles like NBA 2K25, which saw a 7% year-over-year increase in sales. Analysts from firms such as Benchmark, Raymond (NSE:RYMD) James, and JPMorgan have responded positively, raising their price targets for Take-Two to $250, citing the company’s impressive sales figures and strong franchise performance.
DA Davidson and Jefferies have set even higher price targets at $270, maintaining a Buy rating, and highlighting Take-Two’s conservative yet promising fiscal outlook. The anticipation for Grand Theft Auto VI remains a focal point, with its second trailer achieving a record-breaking 475 million views within 24 hours, underscoring high expectations for its fiscal 2027 launch. Despite the delay of GTA VI, Take-Two’s other franchises like Mafia and Borderlands 4 are expected to drive growth in fiscal year 2026.
Analysts express confidence in Take-Two’s strategic planning, with projections for fiscal year 2027 indicating a potential new standard for bookings and profitability. Jefferies anticipates earnings per share exceeding $10.00 for three consecutive years starting in FY27, aligning with the release of GTA VI. While there are some concerns about the underperformance of Civilization 7 and a conservative outlook on mobile bookings, the overall sentiment remains optimistic, with JPMorgan projecting $8.75 billion in bookings for fiscal year 2027.
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