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Take-Two Interactive Software’s analyst price target has increased modestly from $262.02 to $266.16. Analysts cite recent outperformance, an improved fiscal 2026 outlook, and the company’s heightened strategic value following industry consolidation.

Analyst Commentary

Recent street research highlights a mix of optimism and caution among analysts following Take-Two Interactive Software’s updated guidance and changes in the broader industry landscape. The company’s strong performance, upcoming releases, and industry consolidation are shaping sentiment on its valuation and strategic prospects.

Bullish Takeaways

• Bullish analysts highlight Take-Two’s strong quarterly results, which exceeded expectations and prompted upward revisions to both its price target and forward outlook for fiscal 2026.
• Ongoing consumer enthusiasm for upcoming titles, including Mafia: The Old Country and Borderlands 4, reflects sustained demand for Take-Two’s high-quality content pipeline and supports long-term revenue growth prospects.
• The company’s position as the last major independent "AAA" games publisher, following recent industry acquisitions, has increased its scarcity value and enhanced its strategic attractiveness in public markets.
• Some analysts see Take-Two as a potential beneficiary of further industry consolidation, which could generate increased interest or offer new opportunities for mergers and acquisitions in the future.

Bearish Takeaways

• Bearish analysts caution that the growing scale and financial resources of competitors, especially following recent acquisitions and increased investment by entities such as the Public Investment Fund, could intensify competition.
• There is concern about the rising costs associated with developing and marketing top-tier video games, which could put pressure on profit margins if not managed effectively.
• Analysts warn that while scarcity value is a positive for valuation, it also means Take-Two may become increasingly vulnerable to aggressive merger and acquisition activity and market speculation.
• Uncertainties around the timing and performance of major game launches could affect the company’s ability to meet elevated investor expectations in coming quarters.

What's in the News

• Cloud Chamber, the studio developing "BioShock 4" for Take-Two, has laid off an unspecified number of staff. Rod Fergusson, formerly of "Diablo," has been appointed as the new studio head (Bloomberg).
• Take-Two is overhauling parts of the next "BioShock" game following a negative review by 2K Games executives, with a particular focus on improving the game's story and management structure (Bloomberg).
• A well-known leaker claims "Grand Theft Auto 6" might be delayed until September 2026, which could push the release date back by another four months (Tom's Guide).
• Raymond James raised its price target for Take-Two shares to $260, citing the company's strong Q1 results and an improved outlook for upcoming releases like Mafia: The Old Country and Borderlands 4 (Raymond James).

Valuation Changes

• The consensus analyst price target has risen slightly, increasing from $262.02 to $266.16 per share.
• The discount rate has fallen marginally, now at 9.02% compared to the previous 9.21%.
• Revenue growth projections have decreased modestly, shifting from 14.84% to 14.80%.
• The net profit margin has dipped slightly, moving from 12.69% to 12.41%.
• The future P/E ratio has increased moderately, from 65.23x to 67.46x.