Market Overview

Brean Capital Thinks Take-Two Interactive Software Needs To Step Up Its Game

Related TTWO
Making Gains In Video Games: Analyst Gets Bullish On Activision, EA And Take Two
Lightning Round: Jim Cramer Shares His Thoughts On GameStop, Lockheed Martin And More

In a report published Monday, Brean Capital analyst Todd Mitchell reiterated a Hold rating on Take-Two Interactive Software (NASDAQ: TTWO).

In the report, Brean Capital noted, “Take-Two will need to step up its digital game to drive EPS in fiscal 2015. We expect management to take a victory lap after its record breaking launch of Grand Theft Auto 5 when Take-Two reports F4Q14 results on Tuesday night. We look for F4Q14 results to meet, or beat, guidance, capping off estimated fiscal 2014 revenue of $2.4 billion and non-GAAP EPS of $4.15.

"Looking past GTA, we believe Take-Two will wait another year for the installed base of next gen consoles to grow before releasing the next Red Dead. Our preliminary fiscal 2015 estimates are for net revenue of $1.5 billion and non-GAAP EPS of $1.45, We assume titles from two established franchises and an intriguing new IP in addition to the company's annualized releases. However, we believe the key cog will be the company's ability to leverage GTA Online as well as full game downloads and DLC for its lineup.

"Take-Two has had a lot of success in this regard with games like Borderlands; however, the company's monetization strategy for GTA 5 remains murky. Consequently, we maintain our Hold rating on TTWO at current levels.”

Take-Two Interactive Software closed on Friday at $20.38.

Latest Ratings for TTWO

Sep 2017BuckinghamInitiates Coverage OnBuy
Sep 2017Goldman SachsInitiates Coverage OnBuy
Apr 2017Pacific CrestReinstatesSector PerformOverweight

View More Analyst Ratings for TTWO
View the Latest Analyst Ratings

Posted-In: Brean Capital Todd MitchellAnalyst Color Reiteration Analyst Ratings


Related Articles (TTWO)

View Comments and Join the Discussion!