Keep an eye on Take-Two Interactive (TTWO).
Despite some recent weaknesses, there are substantial catalysts ahead. For one, Grand Theft Auto VI should be out soon and is usually a monster seller. In fact, analysts at Raymond James – which just upgraded the stock to outperform with a $170 price target – say GTA VI could sell 35 million copies in its first year out.
Better, according to Barron’s, “The company said in May that it expects net bookings of $8 billion in fiscal 2025, compared to its forecast for $5.45 billion to $5.55 billion in fiscal 2024. That step up had Wall Street salivating about a potential 2024 release of Grand Theft Auto VI.”
Two, the firm is also arguing that TTWO could be a potential acquisition target after Microsoft bought out Activision Blizzard. TTWO last traded at $144.75. We’d like to see the gaming stock rally back to $152 initially. As we near the release of GTA VI, we’d like to see the TTWO stock closer to $180 a share.