Bank of America Calls GTA 6 Release a Reason to Buy Take-Two Shares
According to the bank, the market is underestimating the company's long-term potential.
Analysts at Bank of America recommend investing in shares of Take-Two Interactive, the owner of Rockstar Games, ahead of the GTA 6 release on November 19.
Since the beginning of the year, Take-Two's shares have fallen by 21%, but Bank of America views this as an entry point. The main profit driver, according to analysts, will be the monetization of GTA Online, which is expected to launch in the first quarter of 2027. The bank's earnings-per-share growth forecast is significantly higher than the consensus, and analysts expect the market will have to revise its valuations.
Bank of America has maintained its 'Buy' rating, lowering the target price from $380 to $330, which still implies a 62% increase. The bank notes that Take-Two is trading at a discount compared to other major publishers (P/E 22x) and the S&P 500 index (21x), while also being insulated from risks related to reduced investments in AI.
The forecast comes amid challenges in the gaming industry: in June, Microsoft downsized its Xbox division, which the market interpreted as a warning signal for the entire sector.
