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Friday, Take-Two Interactive (NASDAQ:TTWO), currently trading at $232.34 and near its 52-week high of $238, maintained a Buy rating from Jefferies with a steady price target of $270.00. The analyst commentary highlighted a conservative fiscal outlook ahead of the anticipated release of Grand Theft Auto VI (GTA VI). According to InvestingPro data, the stock has delivered an impressive 59% return over the past year, though current valuations suggest the stock may be trading above its Fair Value. The firm believes that the fundamentals of Take-Two remain unchanged and expressed confidence in the company’s financial projections, citing management’s indication that fiscal year 2027 (FY27) will set a new standard for bookings and increased profitability. With a market capitalization of $41 billion and revenue growth of 5.31% in the last twelve months, the company has shown resilience despite current profitability challenges. InvestingPro analysis reveals 12 additional key insights about Take-Two’s financial health and growth prospects.
Take-Two’s guidance for fiscal year 2026 (FY26) was described as modest, but Jefferies anticipates it to be surpassable. The firm’s positive stance is further supported by expectations of Take-Two achieving over $10.00 in earnings per share (EPS) for three consecutive years starting in FY27, coinciding with the contributions from GTA VI. The price target of $270 is based on a 25 times multiple of the projected FY27 EPS of $10.40.
The analyst’s comments reflect a belief in the company’s strategic planning and long-term potential, especially with the upcoming launch of a major title in its portfolio. The reiteration of the Buy rating suggests that Jefferies sees the current guidance as a prudent move by Take-Two, rather than a cause for concern among investors.
Take-Two’s management has set expectations for FY27 to serve as a benchmark for the company’s booking and profitability goals. This forward-looking approach appears to align with Jefferies’ assessment of the company’s ability to meet and potentially exceed its financial targets in the coming years.
The reaffirmed price target and rating by Jefferies underscore a conviction in Take-Two’s growth trajectory, particularly as it gears up for the release of GTA VI, which is expected to be a significant driver of revenue and earnings for the company. The analyst’s remarks suggest a steady course for Take-Two, with a focus on the long-term horizon. For deeper insights into Take-Two’s valuation and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which provides detailed analysis of the company’s financial health, market position, and future potential among 1,400+ top US stocks.
In other recent news, Take-Two Interactive reported its fourth-quarter fiscal year 2025 earnings, revealing a revenue of $1.58 billion, which surpassed the forecast of $1.55 billion. However, the company’s earnings per share (EPS) of $1.08 fell short of the anticipated $1.12. JPMorgan analyst Cory Carpenter raised Take-Two’s stock target to $250, up from $225, following the strong earnings report. Despite the positive revenue performance, the stock experienced a decline in aftermarket trading, possibly influenced by the EPS miss and cautious market sentiment. The company anticipates a 5% increase in bookings for the next year, driven by the NBA franchise and upcoming releases like Mafia and Borderlands 4. Take-Two’s management projects net bookings for fiscal year 2026 to be between $5.9 billion and $6.0 billion, representing growth at the midpoint. Analyst projections for fiscal year 2027 include $8.75 billion in bookings and adjusted EPS of $9.00, based on the anticipated success of Grand Theft Auto VI. The firm’s Overweight rating and designation of Take-Two as a top pick were reiterated by JPMorgan.
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