On Friday, Benchmark maintained its Buy rating and $200.00 price target for Take-Two (NASDAQ:TTWO) Interactive (NASDAQ:TTWO). The firm's stance follows Take-Two's announcement that it will reveal its Q4 and fiscal year 2024 financial results on May 16, 2024. The company plans to conduct a conference call at 4:30 p.m. EST, accessible at (877) 407-0984.
Following the release of its fiscal Q3 2024 financial results, Take-Two adjusted its fiscal 2024 guidance downward. Benchmark views this revision as a risk mitigation for the company's fiscal Q4 performance in 2024. Despite this cautious outlook, the firm believes that current valuations could improve with the anticipated release of Grand Theft Auto 6.
Benchmark has expressed a cautious approach to Take-Two's fiscal 2025 projections, which are believed to include the launch of Grand Theft Auto 6. However, the firm anticipates that the game's release may not occur within the fiscal year and could instead debut in fiscal 2026. This potential delay in the release of Grand Theft Auto 6 could significantly impact Take-Two's fiscal 2025 net bookings guidance, potentially reducing it by more than $1 billion.
Despite recent struggles, Benchmark sees the eventual launch of Grand Theft Auto 6 as a positive catalyst for Take-Two's stock valuation. The firm suggests that any delays or adjustments to forecasts may offer opportunities to acquire shares, indicating a long-term confidence in the company's growth prospects.
InvestingPro Insights
As Take-Two Interactive (NASDAQ:TTWO) prepares to share its Q4 and fiscal year 2024 financial results, insights from InvestingPro reveal a complex financial landscape. With a market capitalization of $23.99 billion, the company operates with a moderate level of debt and is trading at a high revenue valuation multiple. Despite not being profitable over the last twelve months, analysts predict the company will return to profitability this year, which could be a pivotal factor for investors considering the stock.
InvestingPro Tips highlight that Take-Two's short-term obligations currently exceed its liquid assets, which may necessitate careful financial planning in the near term. Additionally, the company does not pay a dividend, focusing instead on growth opportunities such as the highly anticipated release of Grand Theft Auto 6. These factors, along with a high return over the last decade, could influence investment decisions. For those seeking more in-depth analysis, there are 7 additional InvestingPro Tips available that can provide a more comprehensive understanding of TTWO's financial health.
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