Take-Two stock price target raised to $249 by TD Cowen

On Friday, TD Cowen maintained a positive outlook on Take-Two Interactive (NASDAQ:TTWO), raising the price target on the company’s shares to $249 from the previous $211, while reiterating a Buy rating. The adjustment came after Take-Two reported fourth-quarter fiscal year 2025 bookings at the higher end of their guidance, benefiting from the strong performance of NBA 2K and better-than-expected results from mobile games. The company’s recurrent consumer spending (RCS) also exceeded expectations. The stock’s impressive 59% return over the past year reflects this strong performance, with shares now trading near their 52-week high of $238.

Despite the delay of Grand Theft Auto VI (GTA VI) to fiscal year 2027, TD Cowen did not identify any significant surprises in the fiscal year 2026 guidance. The firm’s decision to elevate the price target to $249 is based on a 20x multiple of the projected adjusted EBITDA for fiscal year 2028. While acknowledging that valuation based on current estimates might appear stretched, with an EV/EBITDA multiple of 129x, the analysts expressed confidence in the potential upside of GTA VI and considered it premature to express concern over valuation at this stage. InvestingPro analysis suggests the stock is currently trading above its Fair Value, though analysts maintain a strong buy consensus with a score of 1.59 (where 1 is Strong Buy).

The delay of GTA VI led TD Cowen to revise their fiscal year 2026 estimates downwards, aligning them with the company’s guidance. The forecast for full-year bookings has been adjusted from $8.35 billion to $5.96 billion, marking a 6% year-over-year increase. Adjusted EBIT is now projected at $669 million, up 9% year-over-year, and adjusted earnings per share (EPS) are anticipated to be $2.64, a 5% increase from the previous year. This follows the company’s current revenue growth of 5.31%, as reported by InvestingPro.

In their commentary, TD Cowen analysts highlighted the ongoing delivery of live services as a key driver of performance, with the mobile segment outperforming expectations. Despite the lowered estimates for fiscal year 2026 due to the GTA VI delay, the firm’s outlook remains bullish, with Take-Two retaining its status as a top pick. The analysts believe that the eventual launch of GTA VI could lead to higher sustainable earnings, contributing to the company’s long-term value. For deeper insights into Take-Two’s financial health and growth potential, including 12 additional exclusive ProTips and comprehensive valuation metrics, visit InvestingPro.

In other recent news, Take-Two Interactive Software (ETR:SOWGn) Inc. reported strong financial results for the fourth fiscal quarter of 2025, with bookings exceeding analyst expectations by 2.5%. The company’s NBA 2K series contributed significantly to this performance, showing a 42% year-over-year growth in consumer spending and a 7% increase in unit sales. Analysts at BMO Capital Markets maintained an Outperform rating with a $236 price target, citing Take-Two’s promising game portfolio, despite a delay in the release of Grand Theft Auto VI (GTA VI). Benchmark analysts raised their price target to $250, noting impressive sales figures for NBA 2K25 and a 14% increase in recurrent consumer spending. Raymond (NSE:RYMD) James also increased their price target to $250, highlighting the company’s successful mobile games and the anticipation for future releases. DA Davidson lifted their price target to $270, emphasizing the company’s financial outlook and strategic planning for upcoming titles like Mafia and Borderlands 4. Jefferies maintained a Buy rating with a $270 price target, expressing confidence in Take-Two’s long-term potential and fiscal projections, especially with the expected impact of GTA VI. These developments reflect a broad consensus among analysts on Take-Two’s growth prospects as it prepares for major game launches.

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