Take-Two Interactive Software has “tremendous earnings power” following the release of its second-quarter results, according to analysts at Wedbush.
The firm reiterated its 'Outperform' rating and upped its price target to $165 from $161. Shares of the company rose 0.3% Wednesday afternoon to $140.51.
The video game producer “is seeing significantly improved mobile revenues, particularly in its delivery of ads,” the analysts wrote in a note to clients.
“Take-Two’s advertising revenues are at an annual run rate of over $750 million with a rebound in advertising demand expected as the economy improves,” they added.
For the quarter, Take-Two posted revenue of $1.28 billion and a loss of $1.22 per share in its fiscal first quarter, while Wall Street had projected $1.35 billion in revenue and a loss of $1.22 per share.
Wedbush also praised the company’s video game pipeline.
“The company consistently delivers high-quality games, and its pipeline is overflowing with quality,” analysts wrote.
“We expect that Take-Two will hit its $8 billion bookings potential and ‘over $1 billion’ in operating cash flow in fiscal 2026 at the latest. If we’re right, the stock presents a compelling value.”
They continued, “When asked on the earnings call whether management still expected FY:25 bookings of over $8 billion and over $1 billion in operating cash flow, the answer was a simple ‘yes.’”
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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