Take-Two Interactive (NASDAQ: TTWO) stock is moving higher Thursday amid bullish trading for the broader market. The company's share price was up 4.3% as of 1:40 p.m. In addition to the bullish stock market backdrop, Take-Two's valuation is being pushed higher by new analyst coverage today. The stock is now up 21% year to date despite substantial sell-offs for the broader market across the stretch.
Before the market opened today, BMO Capital Markets published new coverage reiterating an outperform rating on Take-Two and a one-year price target of $240 per share on the stock. As of this writing, the target suggests upside of roughly 8%. While the target does not suggest huge near-term return potential, it looks more appealing given recent macroeconomic uncertainty and market volatility.
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BMO's analysts have stayed bullish on the stock thanks to a positive outlook on the company's upcoming video game lineup, most notably Grand Theft Auto VI (GTA VI). The firm also anticipates performance improvements for the company's mobile segment.
Take-Two is on track to release Grand Theft Auto VI later this year, and the game is almost certainly poised to kick off a massive new growth phase for the company. The title's immediate predecessor stands as the most profitable entertainment release in history, having shipped 210 million copies worldwide as of the most recent performance update. Like the last game in the series, GTA VI is also poised to generate billions of dollars in high-margin in-game spending from its online multiplayer mode. For investors seeking exposure to the gaming industry, I think that Take-Two stands a very good chance of delivering strong performance over the next five years.
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Keith Noonan has positions in Take-Two Interactive Software. The Motley Fool has positions in and recommends Take-Two Interactive Software. The Motley Fool has a disclosure policy.