Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Take-Two stock holds Buy rating after Q4 results

EditorNatashya Angelica
Published 2024-05-17, 11:00 a/m
TTWO
-

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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.