Trump announces trade deal with EU following months of negotiations
On Thursday, BMO Capital Markets reiterated its Outperform rating on Take-Two Interactive Software (ETR:SOWGn), Inc. (NASDAQ:TTWO) shares, maintaining a price target of $240. BMO Capital’s analyst highlighted Take-Two’s strong positioning in the gaming industry, bolstered by an impressive upcoming lineup, including the highly anticipated "Grand Theft Auto VI" (GTA VI). The stock currently trades near its 52-week high of $220.93, having surged over 32% in the past six months. According to InvestingPro data, analysts maintain a strong bullish consensus with price targets ranging from $135 to $270.
The analyst expressed confidence in Take-Two’s future performance, emphasizing the company’s attractive pipeline as a key driver. The stabilization of Take-Two’s mobile portfolio was also noted as a positive factor. With the confirmation of GTA VI’s release slated for Fall 2025, the analyst anticipates this will be a crucial element for the company’s earnings, potentially leading to a broad guidance range for the fiscal year 2026. While currently showing negative earnings per share of -$21.06, InvestingPro analysis indicates analysts expect the company to return to profitability this fiscal year, with an EPS forecast of $2.53.
Despite maintaining current estimates, the analyst pointed out that their projection for fiscal year 2026 Bookings is $9.24 billion, which is 9.5% higher than the consensus. This estimate could be conservative, especially if GTA VI is priced above $70 for the base game. The anticipation surrounding the next installment of the GTA franchise is expected to have a significant impact on the company’s financials. Current financial metrics show the company maintaining a healthy gross profit margin of 57.92% and operating with a moderate debt level. Dive deeper into Take-Two’s financial health metrics and access exclusive analysis through the comprehensive Pro Research Report, available on InvestingPro.
In their statement, the analyst from BMO Capital Markets said, "This Rockstar remains a top-pick with GTA VI around the corner; We believe TTWO remains the best-positioned publisher, supported by the most attractive pipeline in the entire interactive entertainment industry, as its mobile portfolio stabilizes. We see a reconfirmation of GTA VI for Fall 2025 as the most critical component of earnings, which likely leads to a wide FY26E guidance range. While our estimates remain unchanged, our street-high FY26E Bookings estimate of $9.24B is 9.5% above consensus, which could ultimately prove conservative if GTA VI prices the base game above $70. Reiterate as Top-Pick and Outperform rating with $240 target price."
Take-Two Interactive Software, Inc. continues to be recognized for its strategic positioning and potential for growth, with BMO Capital Markets underscoring the company’s prospects with a strong vote of confidence.
In other recent news, Take-Two Interactive has announced the acquisition of Sydney-based development studio Video Games Deluxe (NYSE:DLX), which will be rebranded as Rockstar Australia. This acquisition is expected to enhance Take-Two’s development capabilities and strengthen its presence in the Australian market. The terms of the acquisition were not disclosed, and it is subject to standard regulatory approvals. Meanwhile, DA Davidson has initiated coverage of Take-Two with a Buy rating and set a price target of $250, citing the company’s strong intellectual property and a busy release schedule for 2025. Analyst Wyatt Swanson projects that Take-Two’s Net Bookings will grow by over 40% year-over-year in fiscal year 2026. TD Cowen has maintained its Buy rating with a $211 price target, noting steady third-quarter fiscal 2025 bookings, driven by NBA 2K’s performance. Benchmark analysts have raised their price target for Take-Two to $225, following strong third-quarter results and anticipated major releases like Grand Theft Auto 6. Mizuho (NYSE:MFG)’s Jordan Klein continues to advocate for Take-Two as a top non-AI stock, emphasizing its potential upside and market opportunities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.