Take-Two Interactive Software (TTWO) lifted at Deutsche Bank on near-term catalysts

Take-Two Interactive Software (NASDAQ: TTWO) was raised to Buy from Hold at Deutsche Bank on Tuesday, with analyst Benjamin Soff raising the price target to $175 from $155 per share.

Soff told investors in a note that they are upgrading the stock on increased long-term visibility and near-term catalysts.

"Last Wednesday, Take-Two announced in a post that Rockstar will release the first trailer for "the next Grand Theft Auto" title in early December. We believe a major product announcement, such as the highly anticipated trailer for GTA 6, is likely to drive positive investor sentiment and should serve as a catalyst for the stock," he explained.

"Additionally, as we move into the back half of FY24 and FY25, we would expect to receive initial announcements for other major releases from Take-Two's robust development pipeline (which includes 14 core immersive titles across FY25 and FY26)," he added.

The investment bank also noted that TTWO updated its multi-year guidance during its earnings report and now anticipates slightly, "but not materially," less than $8 billion in net bookings in FY25.

"We are constructive on Take-Two's ability to create and market top-tier content, and expect at least several additional titles to contribute meaningfully in the coming years, leading to sustainable growth beyond GTA 6," said the analyst.

By Sam Boughedda

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