Investing.com– Stifel raised its target price on Take-Two Interactive Software (ETR:) Inc (NASDAQ:), citing potential in the videogame publisher’s upcoming games beyond just Grand Theft Auto 6, which may not yet be reflected in its share price.
Stifel raised TTWO’s target price to $223.0 from $220.0, maintaining the stock at Buy. The new target represents an upside of nearly 20% from TTWO’s last close on Friday.
Stifel said that the entirety of TTWO’s pipeline should serve as a “meaningful contributor to earnings, cash flows, and net bookings over the coming years.” The brokerage added that the market may not fully appreciate this potential, which makes the stock appear attractive at current levels.
Beyond GTA 6, which will TTWO’s hottest release in the coming year, Stifel flagged strength in the publisher’s other franchises, and that the 2025-2027 lineup included releases from NBA 2K, WWE 2K, Borderlands, Civilization, BioShock, Mafia, and Max Payne.
Stifel expects the franchises to contribute towards a “meaningful uptick” in earnings and cashflow.
TTWO is set to report its December quarter earnings on February 6, with Stifel stating that the print will likely be the last earnings drop recorded by the firm for the next several quarters. The brokerage forecast non-GAAP EPS at $0.57 on net bookings of $1.38 billion, down marginally from the prior year.
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