On Friday, TD (TSX:TD) Cowen maintained a positive stance on Take-Two (NASDAQ:TTWO) Interactive (NASDAQ:TTWO), reaffirming a Buy rating and a $173.00 stock price target for the video game company's shares. Take-Two Interactive , known for popular titles such as NBA 2K, reported fourth-quarter bookings and earnings per share that exceeded their own guidance.
The company's financial year 2025 (FY25) guidance was revised downwards, as the much-anticipated Grand Theft Auto VI (GTA VI) is now slated for a fall 2025 release, which falls into the fiscal year 2026. This new release window is a shift from an earlier expectation that the game might launch in the fourth quarter of fiscal year 2025.
Despite the delay in GTA VI's release, TD Cowen sees a significant opportunity for the company's guidance to outperform, citing the continued strength in Take-Two's mobile gaming sector and a promising lineup of upcoming games. The firm's analyst highlighted the improved performance in the NBA 2K series as a key driver in the company's recent success.
Take-Two's strategic positioning and robust pipeline of games are contributing factors to the firm's decision to reiterate the stock as a top pick in the industry. Investors and gamers alike are keeping a close watch on the company's progress, especially as it approaches the launch of its next blockbuster title.
The reaffirmed stock price target of $173.00 reflects confidence in Take-Two Interactive's growth potential and market performance. The company's current developments and future prospects appear to align with TD Cowen's positive outlook for the stock.
InvestingPro Insights
As Take-Two Interactive (NASDAQ:TTWO) navigates the anticipation surrounding the release of Grand Theft Auto VI, investors are considering various financial metrics and analyst insights to gauge the company's health and future prospects.
According to InvestingPro data, Take-Two holds a market capitalization of $25.56 billion, underscoring its significant presence in the gaming industry. Despite not having turned a profit over the last twelve months, analysts predict that the company will return to profitability this year, which could be a pivotal point for investor confidence.
The company's revenue growth over the last twelve months stands at a solid 11.64%, indicating a healthy expansion of its business. This is coupled with a gross profit margin of 52.07%, reflecting the company's ability to maintain profitability at the operational level.
It is important to note that Take-Two operates with a moderate level of debt and has experienced a high return over the last decade, as per InvestingPro Tips. These factors may provide some reassurance about the company's financial management and long-term performance.
While the delay of GTA VI to FY26 may have prompted adjustments to the company's financial year 2025 guidance, the strength of Take-Two's existing franchises and mobile gaming sector could help mitigate impacts.
For those seeking more in-depth analysis, there are additional InvestingPro Tips available, providing investors with a broader perspective on the company's financial standing and market potential. To explore these insights and more, consider using the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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