Take-Two Interactive saw its price target raised by TD Cowen on Monday. The firm increased the target from $176 to $211. It maintained a Buy rating on the shares.
TD Cowen expects strong growth from upcoming titles. These include the anticipated release of Grand Theft Auto VI in fall 2025. The firm also sees potential in other games in the pipeline, such as Borderlands 4.
The higher target reflects substantial upside from GTA VI’s online mode. TD Cowen believes this will drive significant growth for the company. These factors present a solid opportunity for investors looking at Take-Two.
Take-Two reached a new 52-week high on Monday following the upgrade. The stock traded as high as $189.71 and closed at $188.15. Volume was 1,167 shares.
Several other analysts have also raised their targets on Take-Two recently. Oppenheimer increased its target from $185 to $190 and gave an “outperform” rating. HSBC upgraded the stock from “hold” to “strong-buy”.
Redburn Atlantic initiated coverage with a “buy” rating and $194 target. Insiders have been active in the stock as well. A director sold 2,000 shares on Friday at an average price of $179.17.
This was a total transaction of $358,340. The director now owns 9,692 shares valued at over $1.7 million.
Take-Two price target increases
Institutional investors have also been adjusting their stakes. Itau Unibanco, Crewe Advisors, Truvestments Capital, and HHM Wealth Advisors all purchased new positions or increased their holdings in recent quarters. Take-Two develops and publishes interactive entertainment worldwide.
Its popular franchises include Grand Theft Auto, LA Noire, Max Payne, and Red Dead Redemption. The company has a market cap of $32.95 billion. On Tuesday, Roth/MKM raised its price target on Take-Two to $208 from $182.
The firm maintained its Buy rating. The analyst expects Take-Two to transition from investment mode to reaping benefits starting in 2025. This should significantly increase bookings, EPS, and margins.
Improved cash flow could enable debt reduction and potential M&A. Investors are focused on the release date for GTA VI, part of the world’s largest game franchise. Management expressed enthusiasm about the growing player base and opportunities from GTA Online and GTA+.
Take-Two is now able to launch multiple major titles annually, unlike when GTA V released in 2013. Civilization VII, Borderlands 4, Mafia: The Old Country, and new IPs like Judas are all slated for 2025. The company recently reported fiscal Q2 2025 earnings.
The CEO and leadership team discussed the results and outlook. No specific misses or shortfalls were detailed, suggesting a positive view. Take-Two’s stock has strong momentum, with a 17.81% gain in the past month and 21.55% in the last three months.
However, high valuation multiples indicate much of the growth may be priced in. Analysts expect profitability this year though, aligning with the upcoming inflection point.
April Isaacs is a news contributor for DevX.com She is long-term, self-proclaimed nerd. She loves all things tech and computers and still has her first Dreamcast system. It is lovingly named Joni, after Joni Mitchell.
