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Take-Two Levels Up On Analyst Coverage

Short interest has surged on the "Red Dead Redemption" video game creator

Digital Content Manager
Dec 18, 2018 at 2:54 PM
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At last check, shares of Take-Two Interactive Software, Inc. (NASDAQ: TTWO) were up nearly 2% to trade at $104.22, after Buckingham Research assumed coverage of the "Red Dead" creator with a "buy" rating. Plus, the analyst issued a $130 price target -- an almost 25% premium to current levels. 

TTWO shares have pulled back since peaking at $139.91 in early October, pressured by broad-market and sector headwinds. However, the equity has found support atop the century mark, as well as its ascending 100-week moving average.

Buckingham Research isn't the only analyst bullish on TTWO; 12 of 15 analysts have doled out a "strong buy" rating, with nary a "sell" in sight. The brokerage bunch has been widely optimistic about "Red Dead Redemption 2" sales this holiday season, as the game already enjoyed a record reception back in October.

However, not everyone has faith in TTWO. Short sellers have been piling on, with short interest skyrocketing a whopping 66% in the past two reporting periods. Should the shares once again bounce off support in the $95-$100 area -- a pullback to this region in April-May preceded a run to record highs -- this fresh batch of shorts could be in hot water.

 

 

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