Potential new gaming paradigm favors Take-Two in long run, says Jefferies

Jefferies analyst Andrew Uerkwitz said delays, weak mobile performance, and underperforming titles are "signs that something is amiss" at Take-Two, but the firm does not believe it’s "a Take-Two specific issue" given several peers are also having near-term trouble. The firm believes the value proposition of buying games and playing new games is changing, but it sees the potential new paradigm as one that favors Take-Two in the long run given that "there is enough evidence that the right game launched at the right time will produce outsized returns" and Take-Two’s catalog, capitalized costs and long term track record "keep it best positioned to take advantage." The firm maintains a Buy rating and $165 price target on Take-Two shares.