While most gamers are still eagerly anticipating the arrival of “Grand Theft Auto 6,” investors are already feeling a lot more confident about Take-Two Interactive (NASDAQ:TTWO) thanks to some newly-released analyst commentary. The news was good enough to send shares of the video game developer up over 2% in Thursday afternoon’s trading. Jefferies, via analyst James Heaney, noted that Take-Two is now Jefferies’ leading pick in interactive entertainment.
With both “Grand Theft Auto 6” in the wings and a rising trend in mobile gaming, Take-Two has the “most visible path to its many release catalysts.” Further, Jefferies looks for Take-Two to benefit from “Grand Theft Auto 6” all the way up to its release in late 2025.
While it’s not all sunshine and lollipops, there’s still quite a bit to like. A “long list” of unknowns remains around the game, including the potential presence of “wokeness” in the game itself of the kind that has polarized gamers in the past. However, Jefferies looks for “upward estimate revisions and increased confidence” as the game itself gets closer to release.
Potential Volatility Ahead
While Jefferies seems eager to get in, there are some darker signs ahead, and not just from the potential wokeness in GTA 6. Reports note that Take-Two has been quietly shutting down its Private Division label after shutting down Intercept Games and Roll7 a few months back. That’s going to leave Take-Two on the back foot going forward. With earnings coming out next month, that may also throw a wrench into things in the short-term.
In addition, Take-Two revealed its picks for the cover athletes on NBA 2K25. The Standard Edition will be fronted by Jayson Tatum, while the All-Star Edition will include A’ja Wilson. Wilson will also serve as the cover athlete for the WNBA Edition, which will have a GameStop (NYSE:GME) exclusive physical edition. That by itself is something of a rarity in a market increasingly turning to digital sales.
Is Take-Two a Buy or Sell?
Turning to Wall Street, analysts have a Strong Buy consensus rating on TTWO stock based on 17 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 1.38% rally in its share price over the past year, the average TTWO price target of $181.61 per share implies 19.68% upside potential.
