Cardiff Oncology shares plunge after Q2 earnings miss
Investing.com - Wells Fargo (NYSE:WFC) has initiated coverage on Take-Two Interactive (NASDAQ:TTWO) with an Overweight rating and a price target of $265.00 on Monday. The stock, currently trading at $224.75 with a market capitalization of $41.1 billion, has shown strong momentum with a 22% gain year-to-date.
The rating is based on Wells Fargo’s calendar year 2028 estimated free cash flow per share of $14.03, applying a 25x multiple and discounting back three years at 10% to 2025.
Wells Fargo analyst Alec Brondolo predicts that Red Dead Redemption 3 will launch in calendar year 2028, which the firm expects to be the peak free cash flow period in Take-Two’s current development cycle.
The $265 price target represents significant upside potential from Take-Two’s current trading levels, reflecting Wells Fargo’s bullish outlook on the video game publisher’s future performance.
The 25x multiple used in the valuation is based on a comparable group of media companies that develop original or exclusive content assets, including Netflix (NASDAQ:NFLX), Formula One Group, Disney (NYSE:DIS), Roku (NASDAQ:ROKU), Lion Electric, and The New York Times (NYSE:NYT). InvestingPro analysis shows Take-Two currently trades at premium valuation multiples, with a Price/Book ratio of 19.2x and an EV/EBITDA of 97.4x. Get access to 8 more key InvestingPro Tips and comprehensive valuation metrics with an InvestingPro subscription.
In other recent news, Take-Two Interactive has announced the pricing of its public offering, setting 4,750,000 shares at $225.00 each, with the potential for underwriters to purchase an additional 712,500 shares. This offering could increase net proceeds to approximately $1.19 billion after expenses. The company plans to use these funds to reduce debt and for general corporate purposes, following its $1.19 billion equity issuance aimed at lowering leverage. S&P Global Ratings revised Take-Two’s outlook to stable, expecting its leverage to drop below 2x by the end of fiscal 2026. Additionally, Jefferies reiterated its buy rating with a $270.00 price target, noting that while AI is not yet significantly impacting Take-Two’s games, it may enhance productivity over time. Benchmark also maintained its buy rating, highlighting Grand Theft Auto VI as a long-term growth catalyst. The upcoming title is set for release in May 2026, anticipated to follow the successful model of its predecessor.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.