BofA Securities on Take-Two Interactive: 'pre-order likely ahead of expectations'

BofA Securities analyst Omar Dessouky reiterated a Buy rating and $368 price target on Take-Two Interactive (NASDAQ: TTWO), following the company's first fiscal quarter results.

Take-Two reported first quarter net bookings of $1.39 billion, ahead of the company's guidance of $1.36 billion. NBA 2K26 unit sales grew 9% over its predecessor, with recurrent consumer spending up 7%. GTA franchise bookings rose 3% year-over-year. Mobile revenue declined 7% year-over-year, which the company attributed to moderation of prior hit titles and increased competition in user acquisition.

Management left its fiscal year 2027 bookings guidance unchanged. The analyst noted management acknowledged that GTA 6 pre-orders could pull demand forward as one reason for holding guidance steady.

Dessouky revised his fiscal year 2027 estimates, modeling bookings of $9.16 billion and earnings per share of $8.41, down from prior estimates of $9.31 billion and $9.02, with the reduction driven primarily by the mobile segment.

The analyst continues to expect a new GTA Online to launch within a short window of GTA 6's November 19 release date. The $368 price target is based on 26 times fiscal year 2028 estimated earnings per share of $14.13.

Shares of Take-Two Interactive closed at $246.50 prior to the statement.

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