In a report released today, Omar Dessouky from Bank of America Securities reiterated a Buy rating on Take-Two (TTWO – Research Report), with a price target of $210.00.
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Omar Dessouky has given his Buy rating due to a combination of factors that highlight Take-Two’s current performance and future potential. Notably, the company reported third-quarter net bookings in line with expectations, driven by the exceptional performance of NBA 2K. This game has shown significant growth in recurrent consumer spending and daily active users, which management attributes to gameplay enhancements that boost engagement and monetization. This strong performance suggests a more optimistic growth outlook for the NBA 2K franchise, contrasting with recent weaker trends in similar sports titles.
Additionally, Take-Two has reaffirmed the release timeline for GTA 6, which should alleviate investor concerns about potential delays. The affirmation of other key titles like Borderlands and Mafia further strengthens confidence in the company’s future offerings. Despite some weakness in the mobile gaming segment, Dessouky’s outlook remains positive, with raised forecasts for net bookings and operating margins in fiscal year 2026, supported by the high-margin contributions from NBA Online. Consequently, the price objective has been increased to reflect better earnings visibility, underscoring the rationale behind the Buy rating.
In another report released today, BMO Capital also reiterated a Buy rating on the stock with a $240.00 price target.