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UPDATE: Goldman Sachs Upgrades Take-Two Interactive (TTWO) to Buy

October 6, 2022 3:03 AM EDT
Get Alerts TTWO Hot Sheet
Price: $108.76 +2.22%

Rating Summary:
    30 Buy, 8 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 2 | Down: 23 | New: 24
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(Updated - October 6, 2022 5:51 AM EDT)

Goldman Sachs analyst Eric Sheridan upgraded Take-Two Interactive (NASDAQ: TTWO) from Neutral to Buy with a price target of $165.00 (from $131.00).

The analyst commented, "We upgrade TTWO shares to Buy (from Neutral) and increase our PT from $131 to $165 and frame this upgrade note in terms of a few key themes: 1) while the near term remains fluid (& this is not a call on Q3 operating results), the building long term industry themes (heavily discounted now) should emerge in 2023/2024; 2) TTWO’s content pipeline (with investments building in the past few years) should result in improved revenue growth and expanding margins in the coming years as games are moved from development to launch; 3) we provide a scenario analysis of how the next generation of the GTA franchise could provide an upside node to operating estimates in FY25/26; & 4) an analysis of the integration execution & an improved mobile gaming landscape for the Zynga acquisition in the coming years. In terms of our operating estimates, we slightly raise our FY23 operating estimates (mix of slightly lower mobile gaming bookings & higher recurrent consumer spend in 2H23). Looking to FY24 & beyond, we modestly raise our bookings assumptions as we expect greater sell-through in units (as the installed base grows and as nearly half of the ~93 titles pipeline laid out during Q4 2020 earnings comes to market in FY24 & FY25). In addition, we raise our margin assumptions for FY24 & beyond as we expect to see a greater degree of leverage when key titles (e.g., GTA VI) are released."

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 $117.30 yesterday.


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