Despite pressures on consumer spending, Take-Two Interactive (TTWO) is seen as a stock that can withstand short-term challenges and deliver long-term growth. Analyst Michael Sebastian reiterates his buy rating on TTWO with a price target of $172. He forecasts robust bookings growth driven by upcoming releases like Civilization VII, Borderlands 4, and the highly anticipated Grand Theft Auto VI.
As the earnings reporting season draws to a close, many companies were able to deliver solid results despite pressures on consumer spending.
Sebastian's robust bookings growth estimate is backed by the expected release of key titles – Civilization VII, Borderlands 4 and the much-anticipated Grand Theft Auto VI . Moreover, he expects the company's new console/PC releases to deliver about $2.25 billion in incremental bookings. He anticipates the mobile business will contribute around $3.1 billion, and catalog/live services will generate $2.5 billion in the full year.
While management has expressed high confidence in its ability to release GTA VI next year, the analyst thinks that any potential delay between two fiscal years would have a limited impact on TTWO's two-year earnings path. He expects this vital release to generate about $3 billion of bookings in the first year, while enhancing the company's financial flexibility with over $2 billion in free cash flow.
Sebastian ranks No. 286 among more than 9,000 analysts tracked by TipRanks. His ratings have been profitable 56% of the time, delivering an average return of 12.8%. is the third pick for this week. Despite macro pressures and intense competition in the streaming space, the company has been able to impress investors with its crackdown on password sharing and the rollout of an ad-supported tier.
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