On Tuesday, BMO Capital Markets maintained a positive stance on shares of Take-Two Interactive (NASDAQ:TTWO), reiterating its Outperform rating and a price target of $240.00, representing the highest among analyst targets. Trading near its 52-week high of $191.91, InvestingPro analysis indicates the stock is currently trading above its Fair Value.
The affirmation of the company's stock performance outlook follows a comprehensive analysis by BMO Capital and discussions with Take-Two management regarding the highly anticipated release of Grand Theft Auto VI (GTA VI).
BMO Capital's analyst highlighted Take-Two's management confidence in their financial guidance, particularly expecting organic Bookings' growth in the fiscal years 2026 and 2027. With a market capitalization of $33 billion and an EV/EBITDA multiple of 94x, the company trades at premium valuations.
This optimism is supported by a strong pipeline of game sequels, with GTA VI being a significant contributor to the forecasted growth. The analyst's report includes a projection of 45 million units for GTA VI, indicating high expectations for the game's success. Discover 12 additional key insights about TTWO with an InvestingPro subscription.
The recent meeting with Take-Two Interactive's management also touched upon several strategic areas, including the potential for expansion in mobile gaming, opportunities in licensing, and navigating the regulatory environment under new administrations. These discussions reflect the company's proactive approach to exploring diverse revenue streams and adapting to the evolving gaming landscape.
Management at Take-Two Interactive sees sports titles as a key area for long-term scalable growth. With a strong 6-month return of 17% and revenue growth of 35% over the last twelve months, the company's performance reflects its strategic initiatives.
They emphasized their strong market position in basketball gaming, particularly as the NBA is poised for substantial international expansion. This focus on sports gaming is part of the company's broader strategy to leverage popular sports franchises and tap into global fan bases. Access the complete TTWO Pro Research Report, along with 1,400+ other detailed company analyses, exclusively on InvestingPro.
In conclusion, BMO Capital Markets reiterated Take-Two Interactive as a Top Pick, underscoring their confidence in the company's strategic direction and upcoming product releases. The firm's outlook for Take-Two remains robust, with the anticipated performance of GTA VI and growth in sports gaming being central to their positive assessment.
In other recent news, Take-Two Interactive has been in the spotlight due to its fiscal second-quarter earnings for 2025 and growth projections. BMO Capital Markets has maintained its Outperform rating on Take-Two shares and raised the price target to $240. The firm anticipates robust sales for the upcoming Grand Theft Auto VI (GTA VI), projecting 45 million units sold in its initial Fall 2025 release window.
TD Cowen has also expressed confidence in Take-Two, raising the stock's price target from $176 to $211, with a focus on the potential of GTA VI's online mode. Furthermore, Roth/MKM analysts raised the company's stock target by $26, reflecting expectations of increased bookings and earnings per share starting in 2025.
These recent developments indicate a positive outlook for Take-Two Interactive, with analysts from BMO Capital, TD Cowen, and Roth/MKM expressing optimism about the company's future. The firm's revenue growth has been steady, with a 5-year CAGR of 15% and current annual revenue of $5.46 billion.
Take-Two Interactive is also planning several major title launches in 2025, including Civilization VII, Borderlands 4, and Mafia: The Old Country. The company's management has hinted at new growth opportunities that could enhance its business model and financial outlook.
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