DBS analyst Tsz Wang has maintained their bullish stance on TTWO stock, giving a Buy rating on February 20.
Tsz Wang has given his Buy rating due to a combination of factors that highlight Take-Two Interactive Software’s (TTWO) strong position in the gaming industry and its promising financial future. The company, a respected developer and publisher of interactive entertainment, has a product line-up that spans across various gaming platforms, including consoles, PCs, and mobile devices. TTWO’s strategic focus on a select number of high-quality titles, such as NBA 2K21 and the Grand Theft Auto series, has paid off, with these games driving approximately 60% of the company’s revenue in 2023. Wang projects that the company’s EBITDA will grow at an above-peer average rate of 38% per annum over the next two years, bolstered by the sustained performance of legacy titles and the anticipation of new e-sport games.
Moreover, Tsz Wang’s optimism extends to TTWO’s robust multi-year pipeline, which promises substantial long-term upside potential. The company is expected to release around 20 titles annually in the coming years, leveraging both new and existing franchises. This strong lineup is anticipated to secure continuous revenue and earnings growth. Additionally, Take-Two’s active acquisition strategy, which has seen the company integrate several development studios such as Playdots, Ruffian Games, and HB Studios, aims to diversify its user base and penetrate further into global markets. These strategic moves are expected to contribute to revenue growth and provide additional impetus to the company’s stock performance. Wang’s target price of $175 per share is derived from a forward PE ratio that is slightly higher than the historical average, justified by TTWO’s robust revenue and EBITDA growth outlook.
In another report released on February 20, Wells Fargo also maintained a Buy rating on the stock with a $185.00 price target.
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Based on the recent corporate insider activity of 67 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TTWO in relation to earlier this year.
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Take-Two (TTWO) Company Description:
Take-Two Interactive Software, Inc. engages in the development, publishing, and marketing of interactive software games. Its products are designed for console systems, handheld gaming systems, and personal computers including smart phones and tablets; and are delivered through physical retail, digital download, online platforms, and cloud streaming services. It operates through the following geographical segments: United States, Europe, Asia Pacific, and Canada and Latin America. The company was founded by Ryan A. Brant in 1993 and is headquartered in New York, NY.
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