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Investing.com - DA Davidson raised its price target on Take-Two Interactive (NASDAQ:TTWO) to $270.00 from its previous target while maintaining a Buy rating on the video game publisher’s stock. The new target aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $145 to $275, with the stock delivering an impressive 63.2% return over the past year.
The price target increase follows Take-Two’s first-quarter results, which exceeded the high end of the company’s guidance. The outperformance was driven by several mobile titles and continued success of NBA 2K and the Grand Theft Auto series, prompting Take-Two to raise its fiscal year 2026 guidance to $6.05 billion-$6.15 billion from $5.9 billion-$6.0 billion previously. With a market capitalization of $41.8 billion and revenue growth of 5.3% in the last twelve months, InvestingPro analysis indicates the company operates with a moderate level of debt while maintaining strong growth potential.
Take-Two’s second quarter is expected to feature the release of several prominent titles including Mafia: The Old Country, NBA 2K26, and Borderlands 4, resulting in projected net bookings growth of approximately 15%-19% year-over-year for the quarter.
NBA 2K25 showed sustained success with 11.5 million titles sold to date, surpassing NBA 2K24’s 11 million titles sold in the same period. The game saw daily active users increase by 30% year-over-year, helping drive 48% growth in recurrent consumer spending through better management and development process changes.
The company’s mobile segment outperformed expectations, delivering net bookings growth of approximately 12% in the first quarter despite initial projections of flat year-over-year performance. Toon Blast grew 22% year-over-year while Match Factory achieved record net bookings with 33% year-over-year growth, though Take-Two anticipates mobile growth will decelerate throughout the year given the maturity of many of its titles. For deeper insights into Take-Two’s valuation metrics, growth potential, and 10+ additional ProTips, consider exploring the comprehensive research available on InvestingPro, which includes detailed analysis of the company’s financial health and future prospects.
In other recent news, Take-Two Interactive reported its fiscal first-quarter results for 2025, showing mixed financial performance. The company achieved a revenue of $1.42 billion, surpassing expectations of $1.31 billion, resulting in an 8.4% surprise. However, earnings per share (EPS) were a loss of $0.07, which significantly missed the forecasted $0.28, marking a negative surprise of 125%. Following these results, Take-Two raised its full-year outlook. Analysts responded positively, with Raymond (NSE:RYMD) James increasing its price target to $260 from $250 and maintaining an Outperform rating. BofA Securities also raised its price target to $285 from $260, maintaining a Buy rating, citing Net Bookings that exceeded the high end of guidance by 9%. Additionally, recurrent consumer spending grew by 17% year-over-year, outperforming the company’s guidance of 7% growth. These developments highlight the company’s strong revenue performance despite the EPS miss.
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