Take-Two Interactive Stock Is Heading 30% Higher, According to 1 Wall Street Analyst

The release of “Grand Theft Auto VI” should push Take-Two into a powerful new growth phase.

Take-Two Interactive‘s (TTWO 0.69%) stock price has seen some swings across 2024’s trading as rumors and speculation have emerged about the timing of its next blockbuster video game release. Late last year, the company announced that Grand Theft Auto VI (GTA VI) would debut in 2025. Additionally, the company’s financial guidance seemed to suggest that the game would debut in the first quarter of 2025.

While some subsequent reports have suggested that GTA VI‘s release could slip into 2026, Jefferies Financial Group analyst James Heaney doesn’t think that will happen. The analyst thinks the game is on track to release in 2025. He also believes that Take-Two’s game-creation efforts will benefit from advances in artificial intelligence (AI), and he said that the company’s recent $460 million acquisition of Gearbox Software was a smart one.

As a result, Heaney initiated coverage on Take-Two stock with a buy rating. Heaney also assigned a one-year price target of $195 per share on the stock, suggesting a potential upside of nearly 30%.

Take-Two stock looks like a smart buy

Grand Theft Auto V, the last mainline release in the GTA series, stands as the most profitable entertainment release of all time. Matching that performance will be no small task, but GTA VI will very likely go on to be a massive success.

For long-term investors, it’s probably not a huge risk if the game’s release date slips outside of its currently anticipated window. Like its predecessor, the game will likely have a decade-long lifespan and continue to generate substantial revenue from unit sales and additional in-game purchases for many years after its initial release. The release of Grand Theft Auto VI is poised to kick-start a new growth phase for Take-Two, and I believe the stock is a smart buy.

Keith Noonan has positions in Take-Two Interactive Software. The Motley Fool has positions in and recommends Jefferies Financial Group and Take-Two Interactive Software. The Motley Fool has a disclosure policy.

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