UBS sees promising times ahead for Take-Two Interactive Software, thanks to the anticipated launch of “Grand Theft Auto VI.” Analyst Christopher Schoell has taken a more optimistic stance on the stock, upgrading it from neutral to buy. He’s also bumped up his price target from $170 to $230, projecting a 25% gain from the previous Friday’s close. According to Schoell, the mounting excitement for “Grand Theft Auto VI,” expected to hit the shelves this fall, signals that the company is likely to outperform and wield strong pricing power. He believes the buzz will continue to grow into 2025, driven by fresh announcements, trailers, and gameplay reveals. “We think this is going to boost investor sentiment, mirroring the stock’s historical success before major releases, and bolster confidence in Take-Two’s long-term profit and cash flow trajectory,” Schoell noted.
A recent UBS survey further supports this optimistic outlook, showing that nearly 70% of participants are planning to cut back on spending for other games to make room for “Grand Theft Auto VI.” This suggests a potential shift in the industry, with other gaming companies possibly moving their releases to clear the spotlight for GTA VI’s expected triumph.
Moreover, Take-Two’s robust lineup of other games is set to contribute to its increasing profits and bookings over the next couple of years. While the company’s shares have remained steady this month, they’ve seen a modest 10.8% increase over the past year.
The general sentiment among analysts is positive. According to data from LSEG, 23 out of 28 analysts covering the company have given it a buy or strong buy rating. The average price target implies a prospective gain of over 7%, indicating continued confidence in Take-Two’s growth potential.
