Take-Two price target lowered to $175 from $188 at Stifel

Stifel analyst Drew Crum lowered the firm’s price target on Take-Two to $175 from $188 and keeps a Buy rating on the shares. Fiscal Q3 results were generally in line with expectations, but upside was limited by weaker mobile advertising and NBA 2K24 sales during the period, the analyst tells investors. Those trends are both expected to persist into Q4, while an immersive core title was pushed out of Q4, contributing to a FY24 guidance cut, the analyst added. Given that further movement across the slate suggests a significantly lower net bookings figure for FY25 in the $7B range relative to the company’s previous guide for slightly below $8B, the firm has reduced estimates through the forecast period, but adds that “this appears to be largely timing related” and it believes its investment thesis is still intact.