Jefferies raises Take-Two stock price target to $270

Published 14/05/2025, 09:50
Jefferies raises Take-Two stock price target to $270

On Wednesday, Jefferies analyst James Heaney increased the price target on Take-Two Interactive (NASDAQ:TTWO) shares to $270 from the previous target of $225, while reiterating a Buy rating on the stock. The new target represents potential upside from the current trading price of $226.16, with the stock already showing impressive momentum, having delivered a 56% return over the past year and trading near its 52-week high of $238. Heaney’s outlook anticipates an in-line fourth fiscal quarter of 2025, with the market’s focus likely shifting to the fiscal year 2026 guidance, especially following the announcement that the release of Grand Theft Auto VI (GTA VI) will be postponed to fiscal year 2027.

Heaney has adjusted his fiscal year 2026 projections for the company, now expecting bookings to reach $6.6 billion and earnings per share (EPS) to hit $4.45. The analyst expressed interest in obtaining further details regarding Take-Two’s complete release schedule, the pricing strategy for Borderlands, mobile marketing expenditures, and trends in the NBA franchise. According to InvestingPro data, while the company generated $5.45 billion in revenue over the last twelve months, it currently operates at a loss, though analysts expect a return to profitability this fiscal year.

In light of the delay of GTA VI, Heaney has revised his forecasts for the game’s performance. He now bases his analysis on the expectation that GTA VI will sell 50 million console units, contribute $4.2 billion in total bookings for the Grand Theft Auto franchise, and elevate Take-Two’s fiscal year 2027 EPS to $10.58. The price target adjustment to $270 is predicated on a 25 times multiple of the projected fiscal year 2027 EPS.

Heaney’s comments reflect his continued optimism about Take-Two Interactive’s prospects. The updated price target suggests that despite the delay of a major title, the analyst sees significant value in the company’s future earnings potential. Take-Two Interactive, known for its popular gaming franchises, will be closely watched by investors as it navigates the release schedule changes and provides more information on its future plans.

In other recent news, Take-Two Interactive Software (ETR:SOWGn), Inc. has announced that the much-anticipated video game Grand Theft Auto VI is set to release on May 26, 2026. This marks a delay from the initially projected launch in the fall of 2025. Despite the delay, Take-Two expects to achieve record net bookings for the fiscal years 2026 and 2027. BMO Capital Markets adjusted its price target for Take-Two to $236 from $240 but maintained an Outperform rating, reflecting confidence in the company’s long-term prospects. Similarly, Raymond (NSE:RYMD) James reiterated an Outperform rating with a $240 price target, emphasizing that the delay is typical for Rockstar Games, which prioritizes quality. Citi analysts also maintained a Buy rating with a $260 target, suggesting that the initial negative market reaction to the delay may be short-lived. Analysts at Citi anticipate that further details about the game could positively impact the stock in late 2025 or early 2026. These developments highlight the continued interest and expectations surrounding Take-Two Interactive’s upcoming release.

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