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Investing.com - Take-Two Interactive (NASDAQ:TTWO), which has delivered an impressive 63.2% return over the past year, received a reiterated Outperform rating and $265.00 price target from Oppenheimer on Friday. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $145 to $275.
The video game publisher reported first-quarter net bookings of $1.42 billion, significantly exceeding the consensus estimate of $1.31 billion. The strong performance was driven by better-than-expected results across key franchises, with NBA 2K recurring consumer spending up almost 50% year-over-year, contributing to a 17% increase in total recurring consumer spending. While trading at a high EV/EBITDA multiple of 96.26x, InvestingPro analysis indicates the company is currently overvalued relative to its Fair Value.
NBA 2K25 showed impressive engagement metrics with daily active users increasing 30% compared to the previous year. The game’s season pass maintained momentum with each new season, while small but frequent updates based on player feedback were well received by the community.
Take-Two’s mobile division achieved its first double-digit year-over-year growth since the Zynga (NASDAQ:ZNGA) integration, with titles like Toon Blast, Match Factory!, and Color Block Jam driving the performance. This success across both console and mobile platforms led the company to raise its fiscal year 2026 bookings guidance by $150 million.
With the upcoming releases of Mafia and Borderlands games in the fiscal second quarter, Oppenheimer views both the second-quarter and full-year 2026 guidance as conservative, suggesting potential for further outperformance.
In other recent news, Take-Two Interactive reported its fiscal Q1 2025 results, revealing a mixed financial performance. The company posted revenue of $1.42 billion, surpassing forecasts of $1.31 billion, marking an 8.4% surprise. However, earnings per share (EPS) came in at a loss of $0.07, significantly missing the forecasted $0.28, resulting in a negative surprise of 125%. Following these results, Take-Two raised its fiscal year 2026 guidance to a range of $6.05 billion-$6.15 billion, up from the previous $5.9 billion-$6.0 billion. Analysts have responded to these developments with several price target adjustments. DA Davidson increased its price target to $270, maintaining a Buy rating. Raymond (NSE:RYMD) James also raised its target to $260 while keeping an Outperform rating. BofA Securities set a new target at $285, noting that Take-Two’s Net Bookings exceeded guidance by 9% and recurrent consumer spending increased 17% year-over-year.
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