Take-Two initiated with a Neutral at Citi

Citi analyst Jason Bazinet initiated coverage of Take-Two with a Neutral rating and $105 price target. Take-Two bought the right asset in Zynga but at the wrong time as mobile gaming revenues began to weaken just after the transaction closed, Bazinet tells investors in a research note. While estimates for fiscal 2023 and 2024 have fallen, they have not fallen enough, says the analyst. Bazinet’s 2024 bookings estimates are 10% below the Street, primarily due to expectations of further weakness within the Zynga studio.