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On Tuesday, Oppenheimer increased its price target for Take-Two Interactive (NASDAQ:TTWO) to $215 from the previous $190 while maintaining an Outperform rating on the company's shares. The adjustment reflects the firm's positive outlook on the video game publisher, citing a robust lineup and strong franchise performance. The stock, currently trading at $186.41, has shown impressive momentum with a 24% gain over the past six months and is trading near its 52-week high of $192.14. According to InvestingPro analysis, the company appears to be trading above its Fair Value.
Analyst Martin Yang of Oppenheimer noted that investor sentiment is currently focused on awaiting further news about Grand Theft Auto 6 from the developer, Rockstar Games. He believes that aside from this highly anticipated release, other issues are unlikely to significantly alter investor perspectives or spark new debates that could influence the stock's performance. The broader analyst community maintains a bullish stance, with price targets ranging from $130 to $240.
Yang highlighted the healthy year-over-year comparison for NBA 2K and a strong AAA game slate for the calendar year 2025 as indicators that bookings trends should remain satisfactory, even excluding Rockstar's contributions. Despite the potential for increased competition in the PC and console gaming sectors, Take-Two is seen as relatively shielded due to its unique franchises such as Borderlands and Mafia, as well as its dominance in certain genres with NBA and WWE titles. The company maintains a healthy gross profit margin of 57.3%, though InvestingPro data reveals it operates with moderate debt levels and faces some short-term liquidity challenges. For deeper insights into Take-Two's financial health and 11 additional key ProTips, consider exploring InvestingPro's comprehensive analysis tools.
Although there is always the potential for a delay in the release of GTA 6, the analyst pointed out that such concerns are less pressing for investors than they have been in the past. As part of his assessment, Yang has also adjusted the fiscal year 2026 gross margin forecasts downward to account for a higher number of AAA releases. This revision is balanced by the increase in the price target, suggesting confidence in the company's long-term financial health. With a market capitalization of $32.7 billion and significant growth potential, Take-Two remains a closely watched stock in the gaming sector. Dive deeper into the company's valuation metrics and growth prospects with InvestingPro's detailed research report, available alongside 1,400+ other comprehensive company analyses.
In other recent news, Take-Two Interactive has seen multiple analyst firms adjust their stock price targets. Baird increased their price target to $210, citing anticipation for the release of Grand Theft Auto VI (GTA VI) and a robust game pipeline. Stifel also raised their target to $223, emphasizing Take-Two's development pipeline and earnings potential. BMO Capital Markets reiterated an Outperform rating on Take-Two shares and raised their price target to $240, largely based on the expected robust sales of GTA VI.
However, Bank of America voiced concerns about Take-Two's mobile guidance for fiscal year 2025, pointing to a potential risk due to a 1% quarter-over-quarter decline in in-app purchases. Despite this, Roth/MKM analysts raised the company's stock target by $26, reflecting expectations of increased bookings and earnings per share starting in 2025.
Take-Two Interactive is planning several major title launches in 2025, including Civilization VII, Borderlands 4, and Mafia: The Old Country. These are among the recent developments for Take-Two Interactive, which is showing significant growth potential in the gaming industry.
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