Wedbush Sees Mixed Factors For Take-Two Interactive Software

In a report published Wednesday, Wedbush analyst Michael Pachter reiterated a Neutral rating and $19.00 price target on Take-Two Interactive Software TTWO. In the report, Wedbush noted, “Take-Two Q4 results exceeded expectations, driven by top-line strength. Revenue was $233 million, vs. our estimate of $210 million, consensus of $203 million, and guidance of $170-200 million. Digital revenue grew 51% y-o-y to $122.3 million, while catalog revenue totaled $75.7 million. The largest contributors to Q4 revenue were NBA 2K14, Grand Theft Auto V, Grand Theft Auto Online, Borderlands 2, and BioShock Infinite. Grand Theft Auto Online was the largest contributor to FY:14 digital revenue of $435.1 million. EPS was $0.21, vs. our estimate of $0.15, consensus of $0.10, and guidance of $0.00-0.10.” Take-Two Interactive Software closed on Tuesday at $20.63.