Analysts Target Take-Two Stock After Earnings Report

Take-Two stock looks ready to topple a key trendline

Digital Content Manager
May 17, 2022 at 11:07 AM
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The shares of video game name Take-Two Interactive Software, Inc (NASDAQ:TTWO) are up 10% at $121.20 this morning, following the firm's fiscal fourth-quarter earnings report. Take-Two posted profits for the quarter that beat expectations, while its net bookings rose 8%, thanks to strength in titles like "NBA 2K22" and "GTA V," though this number missed forecasts. The company also released worse-than-expected current-quarter and 2023 sales and profit forecasts.

Several analysts have chimed in following the report. No less than seven analysts lowered their price targets, including Wedbush all the way to $145 from $180. Jefferies, on the other hand, said "we remain bullish as the next three years should see the content pipeline come to fruition, expanding margin structure, and the Zynga acquisition providing diversification."

This round of price-target cuts puts the stock's 12-month consensus price target at $181.05, which is a 50% premium to current levels. Sentiment surrounding TTWO is still extremely bullish, with just two of the 17 in coverage calling it a "hold" coming into today. 

Today's jump has the stock eyeing its first close above the 20-day moving average since early April. TTWO still suffers a 32.2% year-to-date deficit, though it's coming off a more than two-year low of $101.85, touched on May 10. 

Take-Two options traders are also busy this morning, with 17,000 calls and 8,522 puts exchanged so far, which is six times the intraday average. The most popular contracts are the May 125 and 128 calls, with positions being bought to open at the latter. This suggests these traders are eyeing more upside for the stock by the time these contracts expire this Friday, May 20. 

 

 

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