AI Selloff Creates Overshoot, Defensible IP and Robust Bookings Support Take-Two Buy Case

In a report released today, Omar Dessouky from Bank of America Securities reiterated a Buy rating on Take-Two, with a price target of $295.00.

Omar Dessouky has given his Buy rating due to a combination of factors including a conviction that the recent AI-driven selloff has overly discounted Take-Two’s fundamentals, since Google’s Genie 3 does not replicate the complex engines or proprietary content pipelines that underpin the publisher’s flagship franchises. He highlights that roughly half of earnings are protected by exclusive IP arrangements such as NBA/NBPA licenses and that Take-Two’s vast, curated gameplay and multiplayer infrastructure remain defensible advantages against generative tools.
Large third-fiscal-quarter numbers underscore that demand remains strong, with net bookings topping guidance by about 11% thanks to broad-based double-digit growth across NBA 2K, GTA Online, and mobile recurrent spending, while direct-to-consumer sales set a quarterly record. Management raised full-year net bookings guidance by $200 million, affirmed a summer kickoff for GTA VI marketing, and Dessouky therefore nudged FY27–28 earnings forecasts higher, viewing the average of those years’ EPS as the most accurate gauge of sustainable profitability that justifies the $295 price objective and Buy stance.

In another report released today, TD Cowen also reiterated a Buy rating on the stock with a $284.00 price target.

Based on the recent corporate insider activity of 80 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TTWO in relation to earlier this year.