BofA upgrades ‘cheap enough’ Take-Two to Buy

BofA analyst Omar Dessouky upgraded Take-Two to Buy from Neutral with a price target of $120, down from $130, in a post-earnings research note partially titled "From Cheap, to Cheaper, to Cheap Enough on F25 EPS." At the current price of $94.17, he thinks shares now offer "a margin of safety" that alleviates the risk of GTA 6 being pushed out beyond FY25. His new price target based on his FY25 EPS forecast, while lower, provides shareholders "enough upside to ride out the next year, while positioning for multiple expansion" that Dessouky sees being driven by a GTA 6 release date, de-risking of the PC/Console pipeline, and mobile stabilization he thinks could emerge in mid-2023.