Omar Dessouky, an analyst from Bank of America Securities, reiterated the Buy rating on Take-Two. The associated price target was raised to $295.00.
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Omar Dessouky has given his Buy rating due to a combination of factors, including the anticipation of a strong performance leading up to the launch of Grand Theft Auto 6. Dessouky expects a series of earnings beats and upward revisions throughout the fiscal year, driven by conservative management guidance and ongoing strength in the company’s Mobile portfolio and NBA 2K franchise. While the exact details and timing of the next GTA title are highly anticipated by investors, Dessouky believes the stock will continue to benefit from an earnings revision cycle in the meantime.
Moreover, the analyst highlights the potential for a strong second fiscal quarter, with increased estimates for net bookings and earnings per share, primarily due to the Mobile segment’s performance. Despite a mixed launch for the Borderlands franchise, Dessouky anticipates that Take-Two will raise its conservative fiscal year guidance, with the Mobile segment and NBA 2K showing promising results. The potential upside from GTA 6 remains a significant factor, supporting the raised price objective and the Buy rating.
In another report released on October 9, D.A. Davidson also maintained a Buy rating on the stock with a $300.00 price target.
Based on the recent corporate insider activity of 89 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TTWO in relation to earlier this year.