Take-Two stock holds Buy rating and $211 target from TD Cowen

On Friday, TD Cowen maintained a positive stance on Take-Two Interactive (NASDAQ:TTWO), reiterating a Buy rating and a price target of $211.00. According to InvestingPro data, the stock currently trades at $207.85, near its 52-week high, with analyst targets ranging from $135 to $240. The firm’s analyst, Doug Creutz, provided insights on the company’s third-quarter fiscal year 2025 bookings, which landed within the expected range. This performance was attributed to the strong results from NBA 2K, which balanced out the weaker mobile segment results—a scenario that was anticipated by the analyst. With a market capitalization of $36.5 billion and trailing twelve-month revenue of $5.46 billion, Take-Two has demonstrated impressive momentum, posting a 35% price return over the past six months.

Take-Two Interactive reaffirmed its fiscal year 2025 bookings guidance and provided directional bookings guidance for fiscal years 2026-27. The reaffirmation of the Grand Theft Auto VI release for Fall 2025 was highlighted as a potential catalyst for increasing investor confidence in the highly anticipated title’s launch.

Despite the overall steady outlook, TD Cowen slightly adjusted its full-year bookings estimate for Take-Two from $5.63 billion to $5.61 billion, reflecting a 5% year-over-year increase. Adjusted EBIT predictions were also revised from $654 million to $624 million, marking a 5% year-over-year growth, while adjusted earnings per share (EPS) expectations were modestly reduced from $2.59 to $2.52, indicating a 2% year-over-year rise. These adjustments were mainly due to higher costs of goods sold (COGS).

The analyst emphasized the company’s consistent performance and the potential impact of the upcoming GTA VI release, maintaining Take-Two as a top pick in the sector. Despite the minor adjustments to financial estimates, the firm’s outlook for Take-Two Interactive remains strong. InvestingPro analysis shows the company maintains a FAIR overall financial health score, with 12 additional exclusive ProTips available to subscribers, offering deeper insights into Take-Two’s valuation and growth prospects.

In other recent news, Take-Two Interactive has been the subject of several analyst notes following robust third-quarter results. Benchmark analysts raised their price target for Take-Two to $225, citing the success of NBA 2K25 and anticipated releases of major titles like Borderlands 4 and Grand Theft Auto 6 (GTA 6). Similarly, Goldman Sachs increased its price target to $230, reflecting optimism about Take-Two’s future performance and robust content pipeline.

Oppenheimer maintained an Outperform rating and a price target of $215, highlighting the steady fundamentals of the company and the anticipation surrounding the upcoming GTA 6. TD Cowen reiterated a Buy rating and a price target of $211, expressing optimism about the video game sector and Take-Two’s potential growth opportunities.

These recent developments come despite a decline in Take-Two’s stock following a downward revision of guidance by its peer, Electronic Arts (NASDAQ:EA). However, Take-Two’s management has expressed confidence in its operational trajectory and expects to achieve record levels in FY26 and FY27. The company’s reaffirmed guidance and promising future releases underscore the analysts’ positive outlook on Take-Two’s growth prospects.

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