Take-Two Interactive Offers A Scaled Portfolio Of Mobile Games, Says Analyst

Group 1 - J.P. Morgan analyst Cory A Carpenter maintains an Overweight rating on Take-Two Interactive Software Inc (TTWO) with a price target of $200.00 [2] - The company expressed optimism regarding mobile gaming trends, indicating a stable or slight growth in the industry for 2024, as consumers are willing to spend on new titles after a period of fewer hits [3] - Management believes that the upcoming release of GTA VI will enhance focus on the franchise, potentially sustaining demand for GTA V units leading up to the launch [4] Group 2 - The analyst is skeptical about the development of a FIFA 2K simulation game due to the lack of sports league rights associated with the FIFA license, making competition with EA challenging [5] - TTWO anticipates that the Gen-9 console base will reach approximately 112 million by the time GTA VI launches, compared to an estimated 160 million Gen-7 install base at the launch of GTA V, which had a 20% attach rate [6] - The release of GTA VI in Fall 2025 is expected to significantly boost revenue and profitability, serving as a potential catalyst for valuation [6] Group 3 - The analyst sees potential upside from new intellectual properties, improved mobile performance (which accounts for about 50% of bookings), and ongoing cost efficiencies [7] - As of the last check, TTWO shares were trading down by 0.52% at $159.70 [8]