TTWO

Take-Two Interactive Stock Is Heading 30% Higher, According to 1 Wall Street Analyst

Take-Two Interactive's (NASDAQ: TTWO) stock price has seen some swings across 2024's trading as rumors and speculation have emerged about the timing of its next blockbuster video game release. Late last year, the company announced that Grand Theft Auto VI (GTA VI) would debut in 2025. Additionally, the company's financial guidance seemed to suggest that the game would debut in the first quarter of 2025.

While some subsequent reports have suggested that GTA VI's release could slip into 2026, Jefferies Financial Group analyst James Heaney doesn't think that will happen. The analyst thinks the game is on track to release in 2025. He also believes that Take-Two's game-creation efforts will benefit from advances in artificial intelligence (AI), and he said that the company's recent $460 million acquisition of Gearbox Software was a smart one.

As a result, Heaney initiated coverage on Take-Two stock with a buy rating. Heaney also assigned a one-year price target of $195 per share on the stock, suggesting a potential upside of nearly 30%.

Take-Two stock looks like a smart buy

Grand Theft Auto V, the last mainline release in the GTA series, stands as the most profitable entertainment release of all time. Matching that performance will be no small task, but GTA VI will very likely go on to be a massive success.

For long-term investors, it's probably not a huge risk if the game's release date slips outside of its currently anticipated window. Like its predecessor, the game will likely have a decade-long lifespan and continue to generate substantial revenue from unit sales and additional in-game purchases for many years after its initial release. The release of Grand Theft Auto VI is poised to kick-start a new growth phase for Take-Two, and I believe the stock is a smart buy.

Should you invest $1,000 in Take-Two Interactive Software right now?

Before you buy stock in Take-Two Interactive Software, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Take-Two Interactive Software wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.

See the 10 stocks

*Stock Advisor returns as of April 1, 2024

Keith Noonan has positions in Take-Two Interactive Software. The Motley Fool has positions in and recommends Jefferies Financial Group and Take-Two Interactive Software. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.