Citi maintains Buy on Take-Two stock, reiterates $260 target

Published 02/05/2025, 15:42
Citi maintains Buy on Take-Two stock, reiterates $260 target

On Friday, shares of Take-Two Interactive (NASDAQ:TTWO), currently valued at $38 billion, were indicated to open lower following the announcement of a delay in the release of the highly anticipated "Grand Theft Auto VI" (GTA VI). The new launch date is set for May 26, 2026, which is approximately six to nine months later than the originally planned Fall 2025 release. This shift moves the game’s release from fiscal year 2026 to fiscal year 2027. According to InvestingPro data, TTWO has delivered impressive returns of over 64% in the past year, though technical indicators suggest the stock may be overbought.

Despite the delay, Take-Two Interactive expressed confidence in achieving record net bookings for fiscal years 2026 and 2027. With annual revenue of $5.45 billion, the company maintains a strong market position. Citi analysts, led by Jason Bazinet, have reiterated their Buy rating on the company’s stock, along with maintaining the $260.00 price target. Bazinet suggests that the initial negative reaction to the news might be short-lived, anticipating that the stock could recover throughout the trading day. InvestingPro analysis indicates the stock is trading near its 52-week high of $238, suggesting strong market confidence despite current volatility.

The analysts at Citi believe that the official release date could serve as a clearing event and expect that forthcoming details about the game, such as trailers, could provide positive momentum for the stock in the fourth quarter of 2025 or the first quarter of 2026. They emphasized the potential for these developments to act as catalysts for Take-Two’s shares.

Bazinet addressed the pre-market trading activity, where Take-Two’s shares were indicated to be about 10% lower, by stating that the reaction might be an overreaction. He encouraged investors to consider buying the stock amid the current weakness. Citi’s analysis had previously estimated that GTA VI could drive around $2.8 billion in incremental bookings in its first year post-release. Even with the delay, which could justify a 6% decrease in share price based on their estimates, the analysts remain bullish on Take-Two’s prospects.

In conclusion, Citi analysts are advising investors to stay the course with Take-Two Interactive, expecting that more information about GTA VI will become available and possibly boost the stock’s performance in the near future. They reiterated their Buy rating, aligning with the broader analyst consensus of 1.59 (Buy) on InvestingPro. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with 13 additional ProTips and a detailed Pro Research Report, providing valuable context for this significant market development.

In other recent news, Take-Two Interactive Software (ETR:SOWGn) has announced that the release of Grand Theft Auto VI is now scheduled for May 2026, after initially being set for Fall 2025. This delay is intended to give Rockstar Games more time to enhance the game. Take-Two plans to report its fourth-quarter and fiscal 2025 results on May 15, 2025, with a conference call to follow. Analysts from DA Davidson and BofA Securities have both reiterated their Buy ratings on Take-Two, setting price targets at $250, citing the company’s strong game lineup and performance expectations. BMO Capital Markets also maintained an Outperform rating with a $240 target, highlighting the impact of the anticipated GTA VI release on future earnings. Additionally, Rockstar Games, a subsidiary of Take-Two, has acquired the Australian studio Video Games Deluxe (NYSE:DLX), which will now be known as Rockstar Australia. This acquisition is expected to enhance Rockstar’s development capabilities and strengthen its position in the Australian market.

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