Take-Two Interactive gets an upgrade from UBS as ‘Grand Theft Auto VI’ hype builds

Take-Two Interactive Software has “a grand pipeline” ahead thanks to its upcoming release of “Grand Theft Auto VI” video game, according to UBS. Analyst Christopher Schoell upgraded the stock to buy from neutral. He also increased his price target to $230 from $170, indicating 25% upside from Friday’s close. The rising demand for “Grand Theft Auto VI,” which is expected to be released sometime this fall, indicates outperformance and strong pricing power for the company, per Schoell. He expects “the hype to build in ’25, fueled by new announcements, trailers and gameplay,” said Schoell. “We believe this will drive sentiment, similar to the stock’s historical outperformance ahead of major releases, and build confidence in TTWO’s multi-year profit/FCF ramp.” According to a UBS survey, nearly 70% of respondents said they would reduce spending on other games in favor of “Grand Theft Auto VI.” This implies that other video game companies could shift their releases “and clear the path for GTA VI’s outperformance,” Schoell said. In addition, Take-Two’s strong portfolio of other titles will help drive profits and bookings higher over the next two years, he added. Shares are flat month to date, and have added just 10.8% over the last 12 months. TTWO 1Y mountain Take-Two Interactive Software in the last 12 months Analysts are mostly bullish on the stock. LSEG data shows that 23 of the 28 who cover the video game maker rate it a buy or strong buy. The average price target also signals upside of more than 7%.