NEW YORK - Take-Two (NASDAQ:TTWO) Interactive Inc (NASDAQ:TTWO) saw its shares climb 2.6% in pre-market trading today after Deutsche Bank (ETR:DBKGn) upgraded the stock to "buy" from "hold" and set a new price target of $175. This optimistic stance comes as the company boasts a strong pipeline with 14 titles planned for release in 2025-2026. The upgrade follows a bull gap and a notable rise above the $142 mark, signaling a 46.8% increase over the past year.
The upgrade by Deutsche Bank is not the only positive development for Take-Two. Citigroup also revised its price target for the company to $155, reflecting confidence in the video game publisher's future performance. This series of favorable analyst actions coincides with Take-Two's recent earnings report, which revealed revenues of $1.3 billion for Q3, despite a GAAP net loss of $543.6 million. These figures contrast with last year's revenue of $1.39 billion and a net loss of $257 million.
The market response has been largely positive, with a Strong Buy analyst consensus reported by TipRanks and a consensus target price of $164.63. Other firms, including Benchmark, Roth MKM, TD Cowen, Wells Fargo (NYSE:WFC), and Baird, have also revised their price targets for Take-Two following the earnings announcement.
Furthermore, market sentiment appears bullish as indicated by a 50-day call/put volume ratio of 4.54, which is in the 95th percentile. This suggests that options traders are betting on further upside for the stock.
With today's pre-market performance, Take-Two is on track to surpass its year-to-date high of $153.84. The company, founded in 1993 by Ryan A. Brant and headquartered in New York, has established itself as a major player in the development, publishing, and marketing of interactive software games across various platforms. Analysts seem to agree that Take-Two's robust title lineup positions it well for sustained growth in the coming years.
InvestingPro Insights
Adding to the positive sentiment surrounding Take-Two Interactive Inc, InvestingPro Tips and real-time data offer further insights. An encouraging trend is the significant return over the past week and year, as well as the company trading near its 52-week high. This aligns with the market's positive response and the bullish options trading. Yet, it's worth noting that the company's revenue growth has been slowing down recently, and it has not been profitable over the last twelve months as of Q2 2024.
From the InvestingPro data, the company's market cap stands at $26.29 billion. The P/E ratio is at -17.31, indicating the company has been operating at a loss. Revenue for the last twelve months as of Q2 2024 was $5437.9 million, with a growth rate of 25.61%, although quarterly revenue growth for Q2 2024 was at -6.77%. The EBITDA for the same period was at $1364.9 million.
InvestingPro's platform offers an additional 10 tips for Take-Two, providing more comprehensive insights for those interested in in-depth analysis. These insights, coupled with the analysts' optimism and market sentiment, paint a promising picture for Take-Two's future performance.
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