Take-Two (TTWO) Teases New 'Red Dead' Title, But Game Not Expected Until 2018 - Macquarie

October 17, 2016 10:50 AM EDT
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Macquarie analyst Ben Schachter weighed in on Take-Two Interactive (NASDAQ: TTWO) after its Rockstar games unit teased a new Red Dead title with two tweets as well as updating its other social media sites to include the images. They expect this is the company's first announcement of a sequel to the 2010 hit Red Dead Redemption, which as of August 2015 had sold 14mm copies.

Schachter expects the game to be released in FY18, as TTWO management has stated the company will typically announce a game 4-8 months before release.

"We currently have 12mm units in our model for the Sept'18 quarter but there could be additional releases alongside the game, such as a reissue of the old game (now backwards compatible on Xbox One) and a possible VR experience on PSVR," he said. "We also expect the game to have features similar to GTA Online, which has been positive for monetizing GTA V three years beyond its release."

Rockstar's last game, GTA V, was teased in a similar way in 2011 but was not released until 2013.

They also think Rockstar has another unannounced title in development, potentially for a new IP.

The firm maintained an Outperform rating and price target of $48 on TTWO.

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 $42.69 yesterday.

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