Take-Two Interactive (TTWO) Selloff is Overdone - Jefferies

Jefferies analyst Andrew Uerkwitz reiterated a Buy rating and $231.00 price target on Take-Two Interactive (NASDAQ: TTWO) after the recent selloff in Take-Two stock following the S4 merger document filing that appears overdone and may be technical in nature.

The analyst stated "We believe the stock sold off today on a few things. 1) tactical trading set up for arb and special situation desks; 2) questions on operating margin leverage; 3) difference in net bookings growth. On this third point, exhibit 2 and 3 show the differences between the S4, our estimates, and Street. We and the Street over indexed Take-Two net bookings while underestimating Zynga's contribution. We suspect many found this underwhelming. We highlight two things - Take-Two's history of conservatism and then focus on the FY25 estimate. Despite a significant multi-year content unlock that likely includes a major content release from Rockstar in 2024, Take-Two will still grow in FY25."

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 $141.82 yesterday.

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