In a report published Wednesday, Bank of America analyst Justin Post reiterated a Buy rating on Take-Two Interactive Software TTWO, and raised the price target from $24.00 to $25.00.
In the report, Bank of America noted, “Solid F4Q with revenue of $233mn above the Street at $205mn due to Digital (GTA Online, NBA 2K) and Catalog, and while gross margin missed (48% vs. low-50s guidance), EPS of $0.21 beat Street at $0.10 due to lower S&M and fewer shares. The positives were above Street FY15 revenue guidance ($1.40bn vs. $1.37bn) and accelerating y/y Digital rev growth (51% from 42%). Negatives were the below Street FY15 EPS guidance ($0.93 vs. $1.05), cash burn in FY15, and limited Rockstar title disclosure to build confidence in FY15. FY14 was a blow-out year vs guidance, we see upside potential in FY15, and are hopeful for a Red Dead 2 in FY16.”
Take-Two Interactive Software closed on Tuesday at $20.63.
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