Wolfe Research initiated shares of Take-Two (NASDAQ:TTWO) Interactive Software (TTWO) at Outperform with a $186 per share price target in a note Tuesday.
The firm's analysts said the company faces a "multi-year Grand Theft Auto harvest" while it also has signs of expanding portfolio returns.
The investment firm sees upside to TTWO's consensus expectations, noting that the recent Grand Theft Auto VI trailer and future release of the game is "the near-term equity story" for the company.
"Considering the last major iteration (GTA V – 09/17/13 [delayed]) and '25 announcement, we expect release for GTA VI in F4Q'25 (Mar' 25), as such a timeline affords developers to iron out final kinks while providing enough time to capture pre-orders into year-end holidays," said the analysts.
However, looking beyond GTA, Wolfe Research said Take-Two's other franchises contribute importantly to its multi-year thesis for the company.
"Looking past the GTA V release (including to new consoles & PC in F15 & F'16 respectively), other non-mobile net revenue rebounded +71% in part on the backs of Civilization VI and Mafia III (both October and from 2K)," added the analysts. "Such speaks to the cohesive strategy implemented at Take-Two."