Wedbush raised the firm’s price target on Take-Two (TTWO) to $269 from $253 and keeps an Outperform rating on the shares. The firm notes that the practical effect of Take-Two delaying the launch of Grand Theft Auto VI from “fall 2025” to May 26, 2026, is that the company guided substantially below consensus estimates for FY26. The company’s initial guidance will disappoint some investors. Still, Wedbush remains bullish and says it believes the premium multiple is warranted because the company has many levers to pull to drive profits well above our estimates, including the higher price point for GTA VI, integration of the game into GTA Online, and significant margin expansion from its first-party web store. The firm thinks investors will ultimately appreciate the excess free cash flow generation opportunity as the already-spent game development costs are amortized.
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