Take‑Two Interactive Price Target Update
BMO Capital Markets raised its price target on Take‑Two Interactive Software Inc (NASDAQ:TTWO) to $285, up from $280, while reaffirming an “outperform” rating. The revision follows Take‑Two’s confirmation that the base price for Grand Theft Auto VI will be $80, exceeding BMO’s earlier expectation of $70.
BMO noted that the higher launch price should boost bookings despite the game launching with only a single premium edition and no early‑access incentive. The brokerage highlighted that Nintendo recently broke the $70 ceiling with $80 pricing for its flagship releases, suggesting confidence in consumer willingness to pay more for blockbuster titles.
In line with the pricing news, BMO increased its fiscal 2027 bookings estimate by 1.5% to $10.65 billion, placing the forecast about 31% above the midpoint of Take‑Two’s initial guidance. The firm kept its launch‑unit assumptions unchanged at 45 million units for the fiscal third quarter and 10 million units for the fourth quarter, stating that the higher price is unlikely to materially dent demand.
BMO also expects Grand Theft Auto VI to serve as a multi‑year growth catalyst as Take‑Two plans to roll out GTA Online, a PC version, and user‑generated content following the initial console launch. The brokerage cautioned that Take‑Two shares could trade choppily around the game’s release, as investors may “sell the news,” a pattern often observed in the video‑game industry.
Reporting by Roushni Nair.