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On Friday, Goldman Sachs analyst Eric Sheridan updated the firm’s outlook on Take-Two Interactive (NASDAQ:TTWO), increasing the price target from $205.00 to $230.00. Sheridan maintained a Buy rating on the stock, reflecting optimism about the company’s future performance. The stock, currently trading at $183.08 with a market capitalization of $32.15 billion, has shown strong momentum with a 35% gain over the past six months. According to InvestingPro analysis, the stock is trading above its calculated Fair Value. In the FQ3™25 earnings report, Take-Two Interactive highlighted several key points that bolstered confidence in their operational trajectory. The management team expects to achieve record levels in FY26 and FY27, supported by a robust content pipeline leading into FY26. The company generated revenue of $5.46 billion in the last twelve months, maintaining a healthy gross profit margin of 57.3%. InvestingPro data reveals 11 additional key insights about Take-Two’s financial health and market position, available through their comprehensive Pro Research Report.
The company reported solid bookings growth, driven by the strong performance of NBA 2K, which helped to mitigate some of the weaknesses seen in the mobile segment. Additionally, the management team conveyed a positive outlook regarding their ability to scale their intellectual properties in the upcoming years. They also shared a favorable view on emerging distribution channels, which could contribute to the company’s growth.
Take-Two’s management reiterated the anticipated release of Grand Theft Auto VI in the fall of 2025 and offered more concrete timelines for other significant titles, including Mafia and Borderlands. This detailed forward-looking information has provided investors with greater clarity on the company’s content schedule.
Sheridan’s reevaluation of the stock’s price target to $230 is based on the recent earnings report and management’s commentary, which have led to adjusted forward operating estimates. The analyst’s comments underscore a belief that the quarterly earnings report and management’s forward-looking statements have increased investor confidence in Take-Two’s pipeline and future earnings potential. Analyst targets for the stock range from $130 to $240, with a strong consensus recommendation of 1.6 (where 1 is Strong Buy). For deeper insights into Take-Two’s valuation metrics and growth potential, investors can access detailed analysis through InvestingPro’s comprehensive financial tools and research reports.
In other recent news, Take-Two Interactive has been the focus of several analyst notes. TD Cowen reiterated a Buy rating on Take-Two stock with a $211 target, pointing to an optimistic view of the video game sector and the company’s potential growth from the anticipated launches of GTA VI and Switch (NYSE:SWCH) 2. Similarly, Oppenheimer raised its price target to $215 while maintaining an Outperform rating, citing a robust lineup and strong franchise performance. Baird also increased their price target to $210, maintaining an Outperform rating, while Stifel raised its price target to $223, emphasizing the company’s development pipeline and earnings potential.
However, the company’s stock fell as a result of its peer, Electronic Arts (NASDAQ:EA), revising its guidance downwards, reflecting concerns about broader implications for the gaming industry. Despite this, analysts remain confident about Take-Two’s future, highlighting the company’s pipeline, live service model, and mobile gaming growth. These recent developments provide a snapshot of the current perspectives on Take-Two Interactive’s performance and potential in the gaming industry.
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