Breaking Down Take-Two Interactive: 7 Analysts Share Their Views

During the last three months, 7 analysts shared their evaluations of Take-Two Interactive TTWO, revealing diverse outlooks from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $248.0, a high estimate of $270.00, and a low estimate of $210.00. Witnessing a positive shift, the current average has risen by 12.13% from the previous average price target of $221.17.

Understanding Analyst Ratings: A Comprehensive Breakdown

A comprehensive examination of how financial experts perceive Take-Two Interactive is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Take-Two Interactive. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Take-Two Interactive compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Take-Two Interactive's stock. This analysis reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Take-Two Interactive's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Take-Two Interactive analyst ratings.

Unveiling the Story Behind Take-Two Interactive

Take-Two is one of the largest global developers and publishers of video games, with labels including Rockstar, 2K, and Zynga. Grand Theft Auto is the firm's biggest franchise, accounting for about 30% of total sales for the past decade. NBA 2K is the industry's dominant basketball video game, with Take-Two releasing a new version annually. Other notable franchises include Red Dead Redemption, Borderlands, and Civilization. Typically, more than three quarters of the firm's sales are from in-game spending, with the remainder coming from initial game sales. Since acquiring Zynga in 2022, mobile makes up about half of total sales.

Unraveling the Financial Story of Take-Two Interactive

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Decline in Revenue: Over the 3M period, Take-Two Interactive faced challenges, resulting in a decline of approximately -0.48% in revenue growth as of 31 December, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Communication Services sector.

Net Margin: Take-Two Interactive's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -9.21%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Take-Two Interactive's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -2.18%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -0.97%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Take-Two Interactive's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.72.

How Are Analyst Ratings Determined?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.