On Monday, Citi reaffirmed its positive stance on Take-Two (NASDAQ:TTWO) Interactive, maintaining a Buy rating and a price target of $200.00 for the video game company's shares, traded on NASDAQ:TTWO. The endorsement comes after Take-Two reported financial results that surpassed market expectations.
Take-Two Interactive disclosed bookings and non-GAAP earnings per share (EPS) that exceeded consensus estimates. The company provided guidance for the first quarter of fiscal year 2025 (F1Q25), projecting bookings to be between $1.20 billion and $1.25 billion and non-GAAP EPS to range from a loss of $0.05 to a profit of $0.05.
In addition to the quarterly forecast, Take-Two also presented its full fiscal year 2025 outlook, anticipating bookings to fall between $5.50 billion and $5.65 billion, with non-GAAP EPS expected to be in the range of $2.34 to $2.59.
Citi has updated its financial model for Take-Two to incorporate the company's current performance, the latest projections, and newly introduced estimates for fiscal year 2027. Despite these updates, Citi's target price remains unchanged at $200, which is approximately 23 times the projected earnings for FY25.
The firm's decision to uphold its Buy rating is based on the updated financial model and the company's performance to date. The price target reflects Citi's continued confidence in Take-Two Interactive's value and earnings potential.
InvestingPro Insights
For those closely following Take-Two Interactive's financial journey, recent data from InvestingPro offers a multifaceted view of the company's performance. The market capitalization stands at $25.25 billion, reflecting the scale of the business in the gaming industry. Despite some analysts revising their earnings downwards for the upcoming period, the company's stock is known for its low price volatility, which may appeal to investors seeking stability.
One notable InvestingPro Tip suggests that Take-Two operates with a moderate level of debt, which could be a reassuring factor for risk-averse investors. Additionally, the company has shown a high return over the last decade, indicating a history of rewarding its investors, even though it does not pay a dividend. For those looking for more comprehensive insights, InvestingPro offers numerous additional tips on Take-Two Interactive at https://www.investing.com/pro/TTWO. Users can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking valuable information that could guide investment decisions.
Take-Two's revenue for the last twelve months as of Q4 2024 was $5.35 billion, with a slight decline in growth of -0.01%. The gross profit margin stood at 41.72%, demonstrating the company's ability to maintain profitability in its operations. These figures, coupled with the company's outlook and Citi's reaffirmed Buy rating, could suggest a robust financial standing as it moves into the next fiscal year.
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