Wedbush Securities has revised down its financial forecasts for Take-Two Interactive Software Inc (NASDAQ:TTWO), anticipating another downturn in the company's fiscal 2025 expectations.
Wedbush attributed its lowered outlook to further delays in the launch of AAA title Grand Theft Auto VI, which is now not expected until 2026.
Take-Two has seen a broader reduction in the overall game count and a recent emphasis on mobile gaming which is “more difficult to predict”.
But “Take-Two investors have shown a willingness to look beyond a near-term whiff if a big longterm reward comes into view,” said Wedbush.
If the publisher soon drops a GTA VI release date or an enticing new trailer, the shares will be more likely to be bid up.
Wedbush said it expects an “underwhelming” full-year outlook when Take-Two reports on 16 May, although “we are confident that the wait for GTA VI will be worth it”.
Wedbush has consequently adjusted its full-year estimates for Take-Two downwards to $6.51 billion in net bookings and $5.50 in earnings per share (EPS), from its prior estimates of $7 million and $7 respectively.
The stock was given an outperform rating with a $190 12-month price target against a $142.74 publication price.