Citi analyst calls Take-Two Interactive a must-buy before Grand Theft Auto VI launch

In a recent evaluation of Take-Two Interactive, Citi analyst Jason Bazinet announced his excitement regarding the video game publisher's prospects, particularly due to the anticipated release of 'Grand Theft Auto VI'. Published on December 11, 2024, the report highlights that Bazinet has reiterated a buy rating for the company and has raised the stock's price target by $25 to $225, indicating a potential upside of 21.4%. This optimism is underpinned by the expected robust sales of the upcoming title, which is scheduled for release in the fall of 2025, after over a decade of development. The strong future performance is not solely tied to 'Grand Theft Auto VI', but also includes a well-planned line-up of game titles slated for release in the coming fiscal years. Bazinet suggests that Take-Two is set to achieve record levels of net bookings in fiscal years 2026 and 2027 due to these forthcoming launches. Specifically, the company is reportedly planning seven immersive game releases for fiscal 2025, with many of the titles yet to be disclosed to the public. Additionally, there are 22 titles in development for fiscal 2027, which Bazinet describes as the most ambitious development pipeline in the company's history. As the market anticipates further announcements related to the new titles—including their specific release dates and gameplay details—Bazinet believes that such information could serve as a catalyst for the company's stock. He drew attention to the firm’s substantial investment in pipeline development, indicated by its record software development costs and licensing assets amounting to $1.7 billion. The strong financial backing gives Take-Two Interactive a competitive edge in an increasingly crowded gaming market. In broader terms, the confidence in Take-Two Interactive is reflected in analyst ratings, with data from LSEG showing that out of 30 analysts monitoring the company's stock, 25 hold either a buy or strong buy recommendation. This overwhelming support from the financial community underscores a collective belief in the firm's trajectory leading up to the launch of 'Grand Theft Auto VI' and beyond, thereby establishing itself as a prominent player in the video game industry in the years to come.