Analyst Michael Pachter of Wedbush maintained a Buy rating on Take-Two (TTWO – Research Report), boosting the price target to $253.00.
Michael Pachter has given his Buy rating due to a combination of factors influencing Take-Two’s future performance. The delay in the release of Grand Theft Auto VI to May 2026 is seen as a strategic move to ensure the game’s quality, avoiding potential pitfalls similar to those experienced by other rushed releases. Despite the delay, Take-Two expects record bookings and sequential growth in the fiscal years 2026 and 2027, indicating strong future revenue potential.
Additionally, Pachter highlights the company’s robust free cash flow prospects, which are expected to exceed earnings per share by a significant margin due to the capitalization of development costs. This financial strength is further bolstered by potential margin expansion from reduced App Store royalties, which could enhance Take-Two’s earnings power. These factors, combined with an increased price target of $253, underpin Pachter’s confidence in the stock’s long-term value, leading to the Buy rating.
In another report released today, Benchmark Co. also reiterated a Buy rating on the stock with a $225.00 price target.