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Brean Capital Raises Price Target on Take-Two Interactive Software (TTWO) Ahead of 1Q16 Results

July 28, 2015 7:16 AM EDT
Get Alerts TTWO Hot Sheet
Price: $146.92 --0%

Rating Summary:
    32 Buy, 10 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 12 | Down: 10 | New: 10
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Brean Capital reiterated a Buy rating on Take-Two Interactive (NASDAQ: TTWO), and raised the price target to $35.00 (from $32.00), ahead of 1Q16 results. Analyst Todd Mitchell expects TTWO to report a 144% increase in total 1Q16 revenue to $370M and non-GAAP EPS of $0.42. Consensus estimates for F1Q16 sees revenue at $351M and a non-GAAP EPS of $0.36. TTWO is expected to report F1Q16 results on Monday August 10, after the close.

Mitchell commented, "We see a great deal of optionality in TTWO, but upside is grounded in uncertainty. Take-Two had a relatively weak showing at E3, with nothing new from Rockstar. Nevertheless, continued strong long-tail sales of GTA V and continued robust metrics for GTA Online give us a fair degree of confidence in our fiscal 2016 estimates for net revenue of $1.5 billion and non-GAAP EPS of $1.20, both of which are above management’s guidance for the year of $1.3-to-$1.4 billion and non-GAAP EPS of $0.75-to-$1.00. However, we believe there is the potential for even further upside to this outlook from the release of a Destiny-like, high quality narrative DLC for GTA V, which has been widely expected. In the meantime, shares of TTWO continue to trade at a significant discount to its peers on an ex-cash basis, As a result, we are raising our target price to $35 from $32 and reiterating our Buy rating."

For an analyst ratings summary and ratings history on Take-Two Interactive click here. For more ratings news on Take-Two Interactive click here.

Shares of Take-Two Interactive closed at $30.73 yesterday.



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