Investors Cheer Take-Two Interactive's Earnings; What Does The Street Think?

Take-Two Interactive Software, Inc. (NASDAQ: TTWO) saw its shares gain nearly 8 percent on Thursday and hit a new 52-week high of $49.99 after the company reported a top- and bottom-line beat in its second-quarter earnings report.

Here is a look at what some of Wall Street's top analysts had to say following the earnings report.

Benchmark

Mike Hickey of Benchmark maintains a Buy rating on Take-Two's stock with a price target raised to $60.37 from a previous $51.79.

According to Hickey, Take-Two's stock is still trading at a favorable risk to reward profile, and the company's valuation will benefit from continued strong execution, conservative guidance and on-going digital sales opportunity, which will also help boost margins.

Hickey added that Take-Two's management team earned a reputation as being credible, and its recent performance has resulted in financial upside.

Finally, the analyst pointed out that Take-Two is holding $1.2 billion in cash (or $10.39 per share), and this "significant" balance coupled with the company's "discipline" represents an "increasingly powerful asset."

MKM

Eric Handler of MKM Partners maintains a Buy rating on Take-Two's stock with a price target raised to $55 from a previous $52.

According to Handler, Take-Two is generated impressive results as the company's lineup of games performed better than expected and management's outlook for the full year was even more impressive.

Handler added that Take-Two's "Grand Theft Auto" franchise "continues to print money" as "GTA V" lifetime sales rose above 70 million units and "GTA Online" is still generating year-over-year growth.

In addition, "NBA 2K17" set a new franchise record for first week sales and the company will also benefit from the "Mafia III" and "Civilization VI" franchises.

Looking forward to fiscal 2018, the company will release the much anticipated "Red Dead Redemption 2" and the potential for several yet to be announced "2K" games.

Cowen

Doug Creutz of Cowen and Company maintains an Outperform rating Take-Two's stock with a price target raised to $54 from a previous $51.

Creutz suggested that Take-Two "crushed" even its own guidance in its earnings report, and management's upwardly revised guidance "all but de-risked" the rest of the year and created a "clear pathway" toward the major catalyst of "Red Dead Redemption 2."

Creutz also stated that Take-Two is on track to post its third consecutive year of reporting an earnings per share of $1.70 despite no initial launches in its biggest titles ("GTA," "Red Dead" and "Borderlands").

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