BofA reiterates 'buy' on game developer Take-Two ahead of GTA VI launch

BofA has reiterated its “buy” rating on U.S. video game publisher Take-Two Interactive, the owner of Rockstar Games, ahead of the November 19 release of the latest installment in the GTA series, GTA VI, which Reuters has described as the most hotly anticipated video game ever, as Business Insider reports. At the same time, the bank lowered its target price for Take-Two to $330 from $368 per share, though the new TP is still 64% above Tuesday’s closing price of $201.30 per share.

Take-Two stock has fallen sharply as the market awaits the release, down 21% year to date through Tuesday. In premarket trading on the Nasdaq on Wednesday, it had slipped another 0.3% to $200.70 per share as of this writing. “It remains cheap on the LT growth we believe will soon become apparent,” BofA analyst Omar Dessouky wrote, as quoted by BI.

Investors fear a sharp decline in earnings in fiscal 2029 as the initial surge in demand for GTA VI fades, Dessouky noted in comments carried by StreetInsider. Investors are also concerned that Take-Two’s current valuation may already reflect peak earnings. BofA considers these fears overdone and expects the company’s earnings per share to grow around 15% annually over the long term, MT Newswires reports.

BofA expects GTA Online, the game’s online mode, to drive Take-Two’s earnings growth, potentially accounting for 40-60% of earnings per share by fiscal 2029, according to MT Newswires. The online mode generates revenue after the game itself has been sold, with players buying virtual currency, additional content, and other in-game items. Take-Two classifies these purchases as recurrent consumer spending in its financial reports.

Take-Two does not disclose how much GTA Online currently generates. Its latest annual report provides only the contribution from the entire Grand Theft Auto franchise, which accounted for 12.4% of revenue in fiscal 2026, ended March 31.

The first indications of how much players are willing to spend will emerge after GTA VI’s online mode launches, which BofA expects in the first quarter of 2027. The bank believes the market will then have to raise its expectations for Take-Two’s long-term earnings-per-share growth. That would make the stock, currently trading at 16 times the bank’s fiscal 2028 EPS forecast, look inexpensive, Investing.com writes.

U.S. investment bank Jefferies also rates Take-Two stock a "buy." In mid-October, it reiterated its rating at a target price of $300 per share. It believes investors are underestimating GTA VI’s potential.

Jefferies reckons a PC version could generate additional sales if it arrives within months of the console release, significantly faster than has typically been the case for the series’ developer, Rockstar Games. This could also allow the online mode to launch sooner, helping retain players as the initial excitement surrounding the console version begins to fade.

The analyst consensus on Take-Two stock is “buy.” The average target price of $285.10 per share implies 42% upside over the next 12 months.