Take-Two Interactive (TTWO) Receives Buy Rating and $173 Price Target from TD Cowen Amid Borderlands 4 Announcement
In a recent development, TD Cowen has reaffirmed its Buy rating and price target of $173 on shares of Take-Two Interactive (NASDAQ: TTWO) following the announcement of the upcoming release of Borderlands 4 in 2025. The highly anticipated title is set to launch on PC, PS5, and Xbox Series X/S platforms.
Take-Two Interactive, the publisher behind the successful Borderlands franchise, recently acquired Gearbox, the developer of the series, for $460 million in stock. This strategic move has further solidified the company's position in the gaming industry.
The launch of Borderlands 4 is expected to be a significant event for Take-Two, as it aligns with analysts' expectations and does not impact the company's financial model. The game is already factored into projections for the fiscal year 2026.
Additionally, Take-Two Interactive has made headlines with the announcement of other major game titles, including "Mafia: The Old Country," slated for release in the same fiscal year. The company's recent financial results showed a slight decrease in bookings but a marginal increase in adjusted operating income.
Looking ahead, Take-Two's upcoming releases, such as "Grand Theft Auto VI" and "Civilization VII," are anticipated to drive growth and profitability for the company. Analysts expect minimal impact from a recent strike by voice actors and motion-capture artists, citing the long development cycles of major games.
InvestingPro Insights reveal that despite challenges, Take-Two Interactive has shown resilience with a market capitalization of $27.14 billion. Analysts caution about the company's moderate debt levels but predict profitability in the upcoming period, signaling a potential turnaround in financial performance.
In conclusion, Take-Two Interactive's strategic acquisitions and upcoming game releases position the company for growth in the gaming industry. Investors should monitor the company's performance closely and consider the long-term value proposition it offers.
This analysis provides valuable insights for investors looking to understand Take-Two Interactive's current standing and future prospects in the market.