Investing.com– Stifel raised its price target Take-Two Interactive Software (ETR:) Inc (NASDAQ: ), citing potential in the video game publisher’s upcoming games beyond just Grand Theft Auto 6, which may not yet be reflected in the stock price.
Stifel raised their price target on TTWO to $223.0 from $220.0, maintaining the stock at Buy. The new target represents an increase of almost 20% from TTWO’s last close on Friday.
Stifel said the overall TTWO project should serve as a “significant contributor to earnings, cash flow and net provisions in the coming years.” The brokerage added that the market may not fully appreciate this potential, which makes the stock look attractive at current levels.
In addition to GTA 6, which will be TTWO’s most popular release in the coming year, Stifel highlighted the strength in other publishing franchises, and that the line for 2025-2027. included releases from NBA 2K, WWE 2K, Borderlands, Civilization, BioShock, Mafia and Max Payne.
Stifel expects the franchises to contribute to “significant growth” in earnings and cash flow.
TTWO will report its December quarterly earnings on February 6, and Stifel says the print is likely to be the last earnings drop the company has seen in the next few quarters. The brokerage forecast non-GAAP EPS at $0.57 on net bookings of $1.38 billion, down slightly from the prior year.
