Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - DA Davidson raised its price target on Take-Two Interactive (NASDAQ:TTWO) to $300.00 from $270.00 on Thursday, while maintaining a Buy rating on the video game publisher’s stock. The stock, currently trading near its 52-week high of $262.19, has delivered an impressive 40.19% return year-to-date. According to InvestingPro data, analyst targets for the stock range from $150 to $316.
The price target increase reflects DA Davidson’s analysis of engagement metrics for Take-Two’s games, particularly NBA 2K, which reached record engagement levels in September 2025.
According to the firm’s research, NBA 2K "broke out" last month, establishing what appears to be a new baseline for player engagement that correlates with increased monetization potential.
DA Davidson noted some challenges with the launch of Borderlands 4, slightly lowering expectations for that title while still raising overall financial projections for the company.
The new $300 price target implies a multiple of 24 times DA Davidson’s fiscal year 2027 EV/EBITDA estimate for Take-Two Interactive , with the firm citing "continued NBA 2K outperformance" as a key driver behind its more optimistic outlook.
In other recent news, Take-Two Interactive has reported strong financial results for Q1 FY26, surpassing expectations across major financial metrics. The company achieved net bookings of $1.423 billion, exceeding the consensus estimate of $1.310 billion, and an Adjusted EBITDA of $198 million, well above the expected $128 million. Following these results, Benchmark raised its price target for Take-Two Interactive to $275, maintaining a Buy rating. Additionally, Rothschild Redburn increased its price target to $260, citing the upcoming release of Grand Theft Auto VI as a contributing factor.
Meanwhile, Electronic Arts is set to be acquired by an investor consortium for $210 per share in cash, valuing the company at approximately $36 billion. The consortium includes Saudi Arabia’s Public Investment Fund, Silver Lake, and Affinity Partners. In another development, Take-Two Interactive has adopted a deferred compensation plan for key employees, allowing them to defer a portion of their compensation. Lastly, OpenAI plans to monetize its video generation technology, sharing revenue with content rightsholders, as user engagement has surpassed expectations.
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