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On Friday, Raymond (NSE:RYMD) James analyst Andrew Marok increased the price target on Take-Two Interactive (NASDAQ:TTWO) to $250 from the previous target of $240, while maintaining an Outperform rating on the shares. The revision followed Take-Two’s strong fourth-quarter fiscal 2025 performance, where the company’s bookings met the higher end of the provided guidance range. According to InvestingPro data, the stock is currently trading near its 52-week high of $238, with an impressive 59% return over the past year.
Despite the delay of the highly anticipated Grand Theft Auto VI earlier in April, Take-Two has managed to sustain investor interest through the success of other titles. The company’s NBA 2K25 and mobile games delivered robust numbers, capturing the attention of gamers and stakeholders alike. With a market capitalization of $41 billion and revenue growth of 5.3%, Take-Two continues to show strength. Although the guidance was slightly below some expectations, it accounted for the promising performance of upcoming titles such as Mafia: The Old Country and Borderlands 4, which have already garnered significant fan interest.Get access to 10+ additional InvestingPro Tips and comprehensive financial analysis for Take-Two and 1,400+ other stocks.
Marok’s outlook for the fiscal year 2026 remains positive, with expectations that Take-Two’s stock will continue to be attractive to investors leading up to the launch of GTA VI. With analyst price targets ranging from $135 to $270 and a consensus EPS forecast of $2.53 for FY2026, the analyst expressed confidence in the company’s potential to exceed performance targets in the coming fiscal year and anticipates a substantial impact on the profit and loss statement once GTA VI is eventually released to the gaming community.
In other recent news, Take-Two Interactive reported its fourth-quarter fiscal year 2025 earnings, revealing 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 expected $1.12. Despite this mixed performance, DA Davidson raised its price target for Take-Two from $250 to $270, maintaining a Buy rating, while Jefferies also kept a Buy rating with a $270 target, citing a conservative fiscal outlook. JPMorgan increased its price target to $250, highlighting strong results from key titles like NBA, GTA Online, and Red Dead Redemption 2, which drove bookings to the higher end of the company’s guidance.
The anticipation for Grand Theft Auto VI (GTA VI) remains a focal point for analysts, with Jefferies expecting it to significantly boost earnings per share starting in fiscal year 2027. Take-Two’s management projects a 5% increase in bookings for the next year, supported by the NBA franchise and upcoming releases such as Mafia and Borderlands 4. Despite a conservative outlook for fiscal year 2026, analysts express confidence in the company’s strategic planning and long-term potential, particularly with the anticipated release of GTA VI. The company’s guidance for fiscal year 2026 suggests net bookings between $5.9 billion and $6.0 billion, representing a 5% growth at the midpoint.
Analysts like DA Davidson’s Wyatt Swanson believe the company could exceed its conservative growth estimates if upcoming game releases perform well. Jefferies anticipates Take-Two achieving over $10.00 in EPS for three consecutive years starting in FY27, driven by contributions from GTA VI. The reaffirmed ratings and price targets from these firms underscore a conviction in Take-Two’s growth trajectory, especially as it prepares for the release of GTA VI, which is expected to be a significant revenue and earnings driver.
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