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On Tuesday, Take-Two Interactive Software (ETR:SOWGn), Inc. (NASDAQ:TTWO), currently trading at $216.38 and near its 52-week high, received a positive outlook from DA Davidson as the firm initiated coverage with a Buy rating and a price target of $250. The new price target suggests a significant upside based on the company’s future financial performance expectations. According to InvestingPro data, the stock has already shown strong momentum with a 39.23% gain over the past six months.
Wyatt Swanson, an analyst at DA Davidson, cited the strength of Take-Two’s intellectual property and a robust release schedule for the calendar year 2025 as key factors for the optimistic view. The analyst’s projection is that the company’s Net Bookings will grow by more than 40% year-over-year in the fiscal year 2026. While InvestingPro data shows the company isn’t currently profitable, analysts expect a return to profitability this fiscal year, with an EPS forecast of $2.53.
Swanson’s analysis points to Take-Two’s talent and the sustained engagement of its players as pivotal elements that will likely contribute to the company outperforming in fiscal years 2026 and 2027. He anticipates that these factors will enable Take-Two to increase its market share and expand its profit margins in the coming years.
The $250 price target is based on approximately 23 times the firm’s fiscal year 2026 enterprise value to EBITDA and 32 times its normalized price-to-earnings. These multiples reflect the research firm’s confidence in Take-Two’s potential for financial growth and market performance.
Take-Two Interactive has been recognized for its strong portfolio of gaming IPs, and with DA Davidson’s coverage initiation, investors may see this as a reaffirmation of the company’s value in the competitive gaming market. InvestingPro analysis reveals 12 additional investment tips and comprehensive valuation metrics for Take-Two, available through the platform’s detailed Pro Research Report, which helps investors make more informed decisions in the dynamic gaming sector.
In other recent news, Take-Two Interactive continues to hold investor attention with its financial performance and future prospects. TD Cowen reiterated a Buy rating for the company with a price target of $211, highlighting the company’s consistent third-quarter fiscal year 2025 bookings. This was mainly driven by the strong performance of NBA 2K, offsetting weaker results from the mobile segment.
Take-Two also reaffirmed its fiscal year 2025 bookings guidance, with the highly-anticipated release of Grand Theft Auto VI in Fall 2025 expected to boost investor confidence. However, TD Cowen slightly adjusted its full-year bookings estimate for Take-Two from $5.63 billion to $5.61 billion due to higher costs of goods sold.
Benchmark analysts also increased their price target on Take-Two to $225, maintaining a Buy rating following robust third-quarter results. Oppenheimer maintained an Outperform rating with a price target of $215, noting steady fundamentals and the potential impact of the upcoming GTA VI release.
Goldman Sachs analyst Eric Sheridan updated the firm’s outlook, increasing the price target from $205.00 to $230.00, while maintaining a Buy rating. This adjustment was based on Take-Two’s solid bookings growth and a positive outlook regarding their ability to scale their intellectual properties in the upcoming years. These are recent developments that continue to shape the narrative around Take-Two Interactive.
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