Stifel Raises Price Target on Take-Two Interactive Software (TTWO)

Video game company Take-Two Interactive Software Inc (NASDAQ:TTWO) had its stock reiterated as a “Buy” by Stifel today, and the firm lifted its 12-month price target from $52.00 to $59.00.

“We are increasing our target price on Take-Two to $59, with the upcoming launch of Red Dead Redemption 2, arguably the most anticipated console game this year, serving as an event-driven catalyst and reason to own the shares, in our opinion,” said Drew Cum, an analyst at Stifel. “Beyond this release, we have a positive bias on the company’s content cycle, and view its large (and growing) cash position ($10+/share) as a strategic asset/opportunity to participate in industry consolidation, which we think may limit downside risk.”

Red Dead Redemption 2, which is a game currently under active development by the company’s subsidiary Rockstar Studios, has the entire gaming community abuzz this week. The highly popular sequel garnered the Red Dead Redemption series a mass of followers, who were pleasantly surprised to hear about the newest edition of the game last year – and recent news about the upcoming title has sparked speculation as to the real release date.

At the time of the first announcement, the company gave a vague Fall 2017 release date – but, since then, an interesting twist has occurred. A British e-commerce videogame site called Littlewoods, which accepts pre-orders for many of the games it sells, placed the upcoming title on its site with a scheduled delivery date of October 2, 2017 – then quickly changed the date to the end of the year.

Specifically, the site changed the date to December 29, which industry experts have noted is most likely a placeholder that will sit there until the game studio provides an official release date. Some are speculating that the temporarily-placed October date will be the actual date, and that it was an accidental leak by the e-commerce site. Others, however, have noted that it could all be meaningless.

Today, Take-Two’s common stock is up 27 cents, or 0.53 percent. The stock’s volume has slowed to a trickle, with just 607,000 shares traded so far – down from its average volume of about 1.7 million shares per day.

The author has no position on the above mentioned companies.

Tim is a contributing analyst for and specializes in equities trading and public offerings. He is a graduate of UCLA and began his career doing capital markets research for a top investment banking software provider.