Take-Two to outperform as MoffettNathanson anticipates new product cycle
Investing.com
Published Jan 27, 2023 08:27AM ET
Updated Jan 27, 2023 08:37AM ET
Take-Two (TTWO) to outperform as Moffett Nathanson anticipates new product cycle
By Michael Elkins
MoffettNathanson upgraded Take-Two Interactive Software Inc (NASDAQ:TTWO) to an Outperform rating (From Market Perform) with a price target of $140.00 as analysts believe that the video game company has the means and opportunity to materially outperform expectations and affect a step-function higher in bookings and cash flow with new product.
MoffettNathanson’s downgrade of Take-Two to Market Perform last year on the announcement of its intention to acquire Zynga was predicated on the fact that it didn’t make much sense for Take-Two to acquire Zynga if there was great momentum in the product pipeline.
While Take-Two has been bragging about its pipeline for years; even as far back as the launch of Red Dead Redemption II in 2018, investor sentiment has soured. However, after a highly disappointing 2022, analysts believe that the long-awaited content cycle for Take-Two is right around the corner.
Of course, MoffettNathanson runs the risk of being early; a weak 2024 guide in May, or a further moving of the goal post for immersive core titles, etc., could spell some trouble. But something has to give on what Take-Two’s been working on over the last several years.
The analysts wrote in a note, “We don’t expect to get all that much detail about F’24 in a couple of weeks with F3Q’23 earnings. The initial F’24 guide will come with the FQ4 report in May. But because Take-Two has had to open the kimono in the Zynga process and speak to its now long-stated views on the “pipeline,” there are enough crumbs here to warrant near-term anticipation of a much more detailed view of the product pipeline, including formal announcements from Take-Two’s studios.”
Shares of TTWO are up 0.9% in pre-market trading on Friday.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.