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On Friday, Oppenheimer held steady on its outlook for Take-Two Interactive (NASDAQ:TTWO), maintaining an Outperform rating and a price target of $215.00. With a current market capitalization of $32.2 billion, InvestingPro data shows the stock trading near its 52-week high of $192.50. The firm’s analysis followed the company’s disclosure of Q3 net bookings totaling $1.37 billion. The performance was largely attributed to the success of NBA 2K, which helped to balance out weaker results from mobile gaming sectors.
Take-Two Interactive’s financial results revealed a year-over-year growth of 2%, propelled by games such as Toon Blast and Match Factory. According to InvestingPro analysis, the company maintains a moderate debt level with a debt-to-equity ratio of 0.71, though its current ratio of 0.85 indicates some liquidity challenges. Despite the mixed results in certain areas, GTA Online continued to exhibit strength, with a reported 10% increase in GTA+ memberships. The stock has shown impressive momentum, gaining nearly 35% over the past six months.
The management of Take-Two Interactive has expressed optimism about the future, especially looking towards calendar year 2025, which they anticipate to be a significant turning point for the company. They have reaffirmed their guidance, expecting record net bookings in the fiscal years 2026 and 2027. This outlook remains unchanged as investors eagerly await further updates on the next installment of the Grand Theft Auto series, GTA 6.
The analyst from Oppenheimer, Martin Yang, underscored the steady fundamentals of Take-Two Interactive and reiterated the Outperform rating, signaling confidence in the company’s prospects. Yang’s commentary highlighted the consistent performance of key titles and the anticipation surrounding the upcoming GTA 6, suggesting that these factors underpin the positive rating and price target for the company’s stock.
In other recent news, Take-Two Interactive has seen several adjustments to its stock price target from various analysts. Goldman Sachs raised its price target to $230, citing strong performance from NBA 2K and an optimistic outlook for the company’s ability to scale its intellectual properties. The firm also noted the anticipated release of Grand Theft Auto VI in 2025. TD Cowen reiterated a Buy rating on Take-Two, with a price target of $211, highlighting the potential of the Grand Theft Auto V live service and the expected growth in mobile gaming.
Oppenheimer increased its price target for Take-Two to $215, noting a robust lineup and strong franchise performance. The firm also adjusted its fiscal year 2026 gross margin forecasts downward to account for a higher number of AAA releases. Meanwhile, Baird raised its price target to $210, anticipating the significant impact of the upcoming release of Grand Theft Auto VI on the company’s financial performance.
These developments follow the decline in Take-Two’s stock after rival company Electronic Arts (NASDAQ:EA) revised its guidance downwards. This led to investor concerns about potential implications for the gaming industry, including Take-Two. However, analysts have expressed confidence in Take-Two’s future performance, highlighting the company’s strong content pipeline and promising game releases.
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