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On Monday, DA Davidson reiterated its Buy rating on Take-Two Interactive (NASDAQ:TTWO) with a price target of $250.00, as the stock trades near its 52-week high of $225.49. According to InvestingPro data, the company has demonstrated strong momentum with a 9.86% gain in the past week. The firm’s analyst, Wyatt Swanson, provided insights into the company’s recent game releases and their performance. According to Swanson, Take-Two Interactive kicked off the calendar year with several high-profile game launches, including "Sid Meier’s Civilization VII," "PGA TOUR 2K25," and "WWE 2K25."
Swanson’s analysis utilized data from the gaming platform Steam and Metacritic reviews to assess the market reception of these new titles. Additionally, he examined console data to evaluate player engagement with "NBA 2K25." With annual revenue of $5.45 billion and a market capitalization of $39.89 billion, the analyst believes that the company is poised to report quarterly results that align with market expectations. The success of "NBA 2K25" is expected to be a significant contributor to the company’s performance.
However, Swanson noted that there has been some softness and mixed reviews for the company’s other recent releases. Despite this, the overall success of "NBA 2K25" is likely to balance out the impact of the less favorable reception of the other games.
Take-Two Interactive’s stock price target has been maintained at $250.00, reflecting DA Davidson’s confidence in the company’s ability to meet market expectations for the quarter. While currently unprofitable, InvestingPro analysis shows analysts expect earnings of $2.53 per share this fiscal year. The firm’s continued endorsement of a Buy rating suggests they see potential for the stock’s value to grow, based on the current and anticipated performance of its gaming portfolio. For deeper insights into Take-Two’s valuation and 13 additional exclusive ProTips, visit InvestingPro.
In other recent news, Take-Two Interactive has been the focus of several significant developments. BofA Securities increased its price target for the company from $210 to $250, citing a strong content lineup, including anticipated titles like GTA 6, Borderlands, and Mafia, which are expected to drive revenue in fiscal year 2026. BMO Capital Markets maintained its Outperform rating with a $240 target, highlighting Take-Two’s robust gaming lineup and a projected fiscal year 2026 Bookings estimate of $9.24 billion, which is 9.5% above consensus.
In a strategic move, Rockstar Games, a subsidiary of Take-Two, acquired Sydney-based Video Games Deluxe (NYSE:DLX), enhancing its development capabilities and expanding its presence in the Australian market. DA Davidson initiated coverage of Take-Two with a Buy rating and a $250 price target, emphasizing the company’s strong intellectual property and a busy release schedule for 2025. The firm anticipates a more than 40% year-over-year growth in Net Bookings for fiscal year 2026, supported by Take-Two’s talent and player engagement.
Mizuho (NYSE:MFG)’s Jordan Klein also reiterated Take-Two as a top non-AI stock idea, with DA Davidson’s valuation aligning with his suggested price range. Klein noted the company’s potential for significant market share growth and margin expansion in fiscal years 2026 and 2027. These developments reflect a broad confidence in Take-Two Interactive’s strategic positioning and growth prospects within the gaming industry.
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