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Take-Two Interactive (TTWO) PT Cut to $28 at Credit Suisse

May 19, 2015 7:45 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: 13 | Down: 10 | New: 10
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Credit Suisse analyst S. Ju cut its price target on Neutral-rated Take-Two Interactive (NASDAQ: TTWO) to $28.00 (from $32.00) following Q4 results.

Ju commented, "TTWO reported in-line revenue on while profitability outperformed expectations on increased cost discipline. Digital revenue grew 66% year over year driven by full game digital downloads and GTA Online. This positive mix shift towards digital should drive continued gross margin expansion and we have increased our unit volume assumptions for the PC version of Grand Theft Auto V, Battleborn, and the AAA 2k title slated for FY16 which we assume to a BioShock Sequel. Our FY16 revenue estimates increase, while Adj. EPS remains essentially unchanged on higher internal royalty payments and R&D costs. While we maintain our longer term top line estimates, we have moderated our profitability forecasts as we contemplate a higher run rate of R&D costs. We are encouraged by the continued progress of digital sales on console and recurrent consumer spending but maintain Neutral rating primarily on balanced risk/reward - our target price decreases to $28 vs prior $32."

The firm bumped FY16 Adj. EPSto $1.00 from $0.98 prior.

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 $24.20 yesterday.



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