Freedom Capital Markets initiates coverage on Take-Two stock with Buy rating

Investing.com - Freedom Capital Markets initiated coverage on Take-Two Interactive (NASDAQ:TTWO) with a Buy rating and a price target of $265.00 on Monday. The stock, currently trading at $224.75, has gained over 49% in the past year and sits near its 52-week high of $245.07. According to InvestingPro data, analysts maintain a strong bullish consensus on the stock.

The research firm cited the upcoming Grand Theft Auto VI release as a key factor in its bullish outlook, noting that "it is tough to bet against Grand Theft Auto VI’s potential and the hype surrounding the game."

Freedom Capital Markets recommends buying the stock at current levels as the game’s launch date of May 26, 2026, approaches, with analysts modeling unit sell-in of 45 million in fiscal year 2027 and 20 million in fiscal year 2028.

The firm expects Take-Two to achieve record net bookings in fiscal year 2026, supported by the new release of Borderlands 4.

Recurrent net bookings from NBA 2K are projected to increase by a high-single-digit percentage, further strengthening the company’s financial outlook.

In other recent news, Take-Two Interactive has made significant financial moves, including a public offering of 4,750,000 shares priced at $225 each, potentially raising up to $1.19 billion if underwriters exercise their option to purchase additional shares. This capital is aimed at reducing the company’s debt, a strategic shift confirmed by S&P Global Ratings, which revised Take-Two’s outlook to stable from negative. The company plans to use the proceeds to lower its leverage, which has remained above the downgrade threshold since its acquisition of Zynga (NASDAQ:ZNGA) in 2022. Analysts have also weighed in on the company’s prospects, with Wells Fargo (NYSE:WFC) initiating coverage with an Overweight rating, citing strong future cash flow projections. Benchmark maintains a Buy rating, highlighting Grand Theft Auto VI as a significant growth catalyst, with expectations that it will follow the successful model of its predecessor. Jefferies also reiterated its Buy rating, noting that while artificial intelligence is not yet a major factor, it could enhance productivity in the future. These developments reflect a period of strategic financial planning and analyst confidence in Take-Two’s future growth.

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