Investing.com -- BTIG launched coverage of Take-Two Interactive with a Buy rating and a $290 price target on Wednesday, arguing that the upcoming release of Grand Theft Auto VI will drive a sustained earnings recovery for the video game publisher.

Analyst Clark Lampen said GTA VI, scheduled for release on Nov. 19, is expected "to catalyze a sustainable, multi-year improvement in earnings power for the enterprise," with BTIG forecasting an average of $10 in earnings power over the fiscal year 2027 to 2029 timeframe.

The bank also noted precedent for multiple expansion during the pre-release marketing cycle based on prior Rockstar label releases.

BTIG's FY27 estimates sit above both company guidance and consensus, modeling bookings of $8.597 billion and pro forma EPS of $7.16, compared to Take-Two's guidance range of $8.0 billion to $8.2 billion and visible alpha consensus of $8.476 billion and $6.59, respectively.

Beyond GTA, BTIG said NBA 2K has "rebounded from its FY25 blip," and expressed cautious optimism on the mobile segment, noting the broader mobile gaming sector has recovered meaningfully from its IDFA-driven lows in 2021.

The bank added that trends across most of the mobile portfolio "appear steady," excluding Color Block Jam.

On upside risks, BTIG flagged that historical reference points for GTA Online support per-capita spending of $40 to $45, above its base case estimates of $30 to $40 in years one through five. The bank's $290 price target is based on a 29x price-to-earnings multiple.