Shares of Take-Two Interactive Software, Inc
The report came amid an exciting earnings season. Here are some key analyst takeaways from the earnings release:
- Wedbush analyst Nick McKay maintained an Outperform rating, while raising the price target from $130 to $154.
- Benchmark analyst Mike Hickey reiterated a Buy rating, while raising the price target to $145.
- Raymond James analyst Andrew Marok reaffirmed a Market Perform rating on the stock.
While Take-Two Interactive Software's fiscal 2024 guidance came in below the consensus estimates, its fiscal 2025 guide "calls for bookings growth of over roughly $2.5 billion," McKay said.
"The plain implication is that Grand Theft Auto VI is planned for FY:25 and we believe it is highly likely that the game is nearing completion," the analyst wrote. Delays are "more probable," given "management's clear preference to allow developers as much time as necessary to complete high quality games."
Benchmark
"TTWO initiated a conservative F1Q24 and FY24 growth outlook, missing consensus view on both revenue and profitability, but we think de-risking the year," Hickey wrote.
Take-Two Interactive Software also provided guidance for fiscal 2025, "estimating a net bookings opportunity of +$8B and adjusted unrestricted operating cash flow of +$1B, but did not guide to profitability," the analyst stated. "We believe guidance confirms GTA Next will be launched in FY25 and will provide the significant catalyst for net bookings and profitability growth," he added.
Raymond James
"Take-Two reported F4Q23 results ahead of expectations driven by outperformance in its back catalog and mobile business," Marok said.
"While TTWO's FY24 outlook was light, we think investors are likely to look past that to its uncharacteristically detailed and optimistic FY25-26 commentary, which calls for $8B+ in bookings in FY25 and further growth in FY26," he added.
