Take-Two Interactive Software Inc (NASDAQ:TTWO) shares could see a stronger long-term monetization profile from the next iteration of Grand Theft Auto Online (GTAO), according to Bank of America, which raised its price objective on the stock and upgraded its forward bookings assumptions for the franchise.
Bank of America reiterated its 'Buy' rating on Take-Two and raised its price objective to $368, based on a 26x multiple applied to its FY28 earnings estimate. The firm characterized this as a peak valuation scenario, with potential for further upward revisions if GTAO monetization exceeds expectations.
The firm increased its financial year 2028 GTAO bookings forecast by roughly $900 million to $2.2 billion, lifting its assumed annual revenue per monthly active user (MAU) to $60 from $35 previously.
The revision reflects expectations that the next version of GTAO could monetize at nearly twice the rate of its predecessor, narrowing the gap with leading live-service titles such as Fortnite.
The analysts argued that GTAO currently under-monetizes relative to comparable franchises, and expect the next installment to close that disparity as its “pay-to-progress” structure encourages higher average player spending than Fortnite’s cosmetics-driven model. Bank of America also noted that Grand Theft Auto VI’s player base is likely to carry higher lifetime value than the broader free-to-play audience seen in other major live-service ecosystems.
At the high end of the estimate range, the firm pointed to monetization levels above $100 per MAU in heavily “pay-to-win” sports titles, suggesting additional upside if engagement trends skew more aggressively toward in-game spending.
Bank of America left its financial year 2027 estimates unchanged, citing a likely late-year ramp for GTAO’s contribution. It now forecasts financial year 2028 net bookings of $10.7 billion and earnings per share of $14.23.
Beyond revenue assumptions, the report highlighted structural improvements at Rockstar that could support stronger monetization. These include a more robust content pipeline, enhanced anti-cheat systems, and a substantially larger live-service team, expanded to more than 100 staff compared with roughly 10 at GTAO’s 2013 launch. The analysts believes that these changes address early limitations that previously constrained long-term engagement and spending.
The bank’s analysts also suggested that GTAO’s current iteration, which generates an estimated $400 million in annual bookings versus a peak of around $700 million in 2021, underscores the room for growth in a more modernized live-service framework.
Bank of America estimates that the next GTAO could support more than 40 million sustainable MAUs, potentially placing it among the largest live-service franchises globally, behind only Fortnite.
Take-Two shares traded up 2% at $244 on Tuesday afternoon.