Technology

Analyst opinions on Take-Two Interactive stock

The long-awaited first trailer for GTA 6 has finally been released, but a crucial detail remains hidden from fans for now.

Eulerpool News Dec 6, 2023, 6:00 PM

On Tuesday, the stock price of US software developer Take Two Interactive fell by 3.6 percent due to the release of the first official trailer for the latest installment of the popular video game series Grand Theft Auto (GTA). At the end of the trading day, the stocks were 0.5 percent weaker, trading at $156.72.

The losses are due to a crucial detail missing in the trailer of Take-Two subsidiary Rockstar Games, as explained by analyst Andrew Uerkwitz of US investment bank Jefferies. "There is still no specific release date. This fuels concerns of a delay until Christmas 2025," Uerkwitz said.

A possible release date in February or March 2025 for GTA 6 could help Take Two achieve its financial forecasts for 2025/26. According to the latest hints from Rockstar Games, the sixth installment of the series is planned for 2025, which had previously raised hopes for an earlier release. The announcement that the trailer would include images and information about the game for the first time contributed to a twelve percent increase in the stock in recent weeks.

Martin Yang, Senior Analyst for Emerging Technologies and Services at Oppenheimer, does not see the lack of release date as a cause for concern. According to his opinion, it is not too early to buy the stock. "We are glad to hold and buy the stock now," Yang explained to Yahoo Finance. Once more advertising for the game is done and further details about the gameplay are released, investors can get a better idea of how the game will impact Take Two Interactive's results in the long term.

According to the financial service LSEG, currently 21 out of 25 analysts who cover the stock recommend buying. The remaining four recommend holding the stock. However, the average target price of $165 is only about five percent higher than the current price. Despite the stock losses after the trailer release, the opinions of the analysts are mostly positive.

The release of the trailer has also raised high expectations among investors and players. Oppenheimer analyst Yang emphasized the importance of advertising and gameplay details in order to better assess the potential of GTA6. According to financial service LSEG, analysts also see long-term potential in GTA6 and therefore recommend buying Take Two Interactive shares.

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