In $147 and change...
TTWO Take-Two Interactive Software, Inc.
$150.136.19 (+4.30%)12:45 PM 07/11/23
NASDAQ | $USD | Realtime
son still not in.
Stoney! Your kid's a Peter Lynch. Didn't you tell us this last month?
How Upcoming Game Reveals Could Catalyze Take-Two Interactive's Growth: Analyst Take
Truist Securities analyst Matthew Thornton reiterates Take-Two Interactive Software Inc (NASDAQ:TTWO) with a Buy and a $158 price target.
The re-rating builds on expectations of higher bookings and EPS in FY26 and favorable valuation multiples compared to industry peers.
FY24 Outlook: The consensus hurdle for FY24 is considered low, with potential game-reveal catalysts driving expectations.
Game Releases: The anticipation of a 31st Union title and a possible remake of Red Dead Redemption 1 generate excitement among investors.
Updated Model: The model for FY24 assumes earnings per share (EPS) of $3.97 and bookings of $5.65 billion, surpassing the consensus estimates of $3.37 and $5.57 billion, respectively.
Future Game Reveals: It is expected that game reveals throughout FY24, including GTA, 31st Union, BioShock, and a potential RDR1 remaster, could act as catalysts for the company.
First Quarter 2024: The first quarter is likely to have a low hurdle, with bookings estimated at $1.26 billion and EPS at $0.66, surpassing consensus estimates of $1.22 billion and $0.38, respectively.
Reasonable Assumptions: Key assumptions for the first quarter include revenue from Consumer Spending (RCS) and full-game sales, gross margin, and below-the-line items in line with guidance.
Future Years: FY25 is modeled with an EPS of $7.77 and bookings of $8.04 billion, while FY26 is likely to have an EPS of $8.89 and bookings of $8.49 billion
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At a PE of 30 that puts 2026 at $270/share.
That would be a double almost in 3 years. Not bad really.
I really like the idea of selling those puts to get in the stock.
You should suggest that to the hf.