"One of the biggest releases of all time". Is it worth buying shares in the developer of GTA VI?

Video game developer Take-Two Interactive Software will get a major boost from the long-awaited release of Grand Theft Auto VI, which is scheduled for November, according to Piper Sandler. Analysts at the investment firm began coverage of Take-Two shares with a buy recommendation and a target price of $280, CNBC reports. This target implies a rise in quotes by about 23% from the closing level of trading on Monday, June 1.

"Grand Theft Auto VI has the potential to be one of the biggest entertainment releases of all time," wrote Piper Sandler analyst James Callahan. He considers exaggerated fears that after the release of GTA VI shares of the company may fall in price: investors should not fear the classic scenario of "buy on rumors, sell on facts," the analyst said. Among his arguments are also the improvement of Take-Two's mobile business and the shortage of similar public companies on the market.

The GTA franchise brings in a significant portion of Take-Two's total revenue; the previous installment, Grand Theft Auto V, sold millions of copies worldwide. But the release of the new game has already been postponed several times. The last time - last November - the announcement of the postponement dropped the developer's quotes by 8%.

Take-Two's market value is down more than 11% this year, while the S&P 500 broad market index is up 11%. At the premarket on June 2, the company's securities were cheaper by 1.3%. At the same time, Wall Street almost unanimously advises to buy them: bullish ratings were assigned by 27 analysts out of 30, MarketWatch shows.

This article was AI-translated and verified by a human editor