Take-Two Interactive (TTWO) PT Lowered to $145 at Oppenheimer

Oppenheimer analyst Andrew Uerkwitz lowered the price target on Take-Two Interactive (NASDAQ: TTWO) to $145.00 (from $180.00) while maintaining an Outperform rating.

The analyst commented, "We expected mobile weakness ahead of F2Q23. However, F2Q results and guidance surprised us again to the downside. Management reduce FY23 guidance, with 70% of the cut attributed to weaker mobile and shifts in release timing. Visibility for FY23's game slate is incrementally better, but such visibility is hardly enough to repair investor confidence in the short term. Mobile games are likely to stay under pressure for another six months. We lower our PT to $145 (from $180) on lower FY24/FY25 estimates, driven by lower bookings/gross margin assumptions. With underperforming mobile games and lack of sufficient visibility beyond FY23, TTWO makes for a tough investment in the very near term. However, its pipeline stays substantial throughout FY25, and we are another step closer to GTA 6. Reiterate Outperform."

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