From Nasdaq:

Shares for Take-Two Interactive Software Inc. have dropped due to a lowered FY25 bookings outlook in its Q3 earnings report. Analysts share varying outlooks with Oppenheimer analyst Martin Yang maintaining an outperform rating. Goldman Sachs has lowered its price from $200 to $185 and maintained a Buy rating on Take-Two shares. Roth Capital Partner analyst Eric Handler has suggested a “Buy” rating with a target price raised from $168 to $185 despite a 9.5% drop in share price post-announcement.

Another recent news report indicated that TTWO revised its FY23 net bookings to $5,315M, down 4% from previous guidance, citing shifts in release dates and softness in mobile advertising and NBA 2K24 sales. Yang wrote, “The company is working on a significant cost reduction program across the entire business to enhance margin, which led to the removal of $1B target in adj. unrestricted operating cash flow in FY27.”

Oppenheimer cited Take-Two’s idiosyncratic exposure to thematic elements, including its multi-year content pipeline translating into bookings potential.

According to Goldman Sachs, the firm has updated its operating estimates for this earnings report and forward management commentary, lowering its price target from $200 to $185. Sheridan said, “Positive momentum around the GTA franchise, as GTA V reached 195mm+ lifetime units sold-in (+5mm QoQ) and GTA Online outperformed internal expects, as anticipation builds around the release of GTA VI in calendar 2025 (trailer was largest video launch ever, incl. 93mm YouTube views in first 24hrs).”

Stifel noted that Take-Two has a robust pipeline of new games and initiatives, including GTA VI. Still, Stifel lowered its price target for TTWO from $188 to $175.

Wedbush suggested that GTA VI may have been delayed beyond FY:25, aligning with previous estimations. “We have no reason to believe that GTA VI has slipped or will slip out of calendar 2025, and we view that possibility as a remote one, particularly since Rockstar has committed to a 2025 launch date,” McKay noted.

Overall, the company is expected to grow year over year in FY26.

Additionally, the firm anticipated significant success for GTA VI, projecting sales of over 35 million copies in its first year, which would greatly contribute to bookings and earnings growth. Wedbush also noted the potential for increased engagement with GTA Online upon the release of GTA VI and highlighted Take-Two’s diverse portfolio of upcoming games.

Baird Equity Research highlighted TTWO’s strong product pipeline, increasing mix of online and recurrent revenues, and positive industry trends as factors supporting this rating. However, risks include TTWO’s higher-than-average revenue concentration, limited visibility into release timing, and macro challenges.

Roth Capital Partners remains confident in the quality of upcoming games releases and suggests being buyers on weakness after a 9.5% drop in share price post-announcement.



Read more: 6 Take-Two Analysts Address GTA VI Prospects After Q3 Earnings: ‘Rockstar Commits To 2025 Launch’