Grand Theft Auto Release Date Disappointment Doesn’t Deter Take-Two Investors

Fans eagerly anticipating the release of the highly-anticipated video game, Grand Theft Auto VI, may have to wait until 2025. While this news might have been disappointing to some, investors in the game’s publisher, Take-Two Interactive, have shown resilience.

In premarket trading on Wednesday, shares in Take-Two saw a notable 3.4% increase, reaching $162.50. This followed a 3% jump on Tuesday and indicated that the stock was set to open above its pre-GTA VI release date revelation level. It should be noted that the stock initially experienced a decline of over 3% in the week after the announcement.

The recent surge in Take-Two’s stock can be attributed to its upcoming inclusion in the Nasdaq-100 Index. Nasdaq has announced that Take-Two will replace SeagenInc after Pfizer’s acquisition of the biotech company is completed as expected on Thursday. Take-Two is set to be added to the index before the market opens on Monday.

The 2025 release news has sparked mixed opinions on Wall Street. Omar Dessouky, an analyst at BofA Securities, downgraded Take-Two shares from Buy to Neutral last week, citing uncertainty surrounding the game’s launch timing. Dessouky pointed out RockStar Games’ history of delaying release dates. Despite this, he acknowledges that the game has the potential to generate above-market earnings growth for Take-Two in the future. However, he warns that a delay could keep the stock in a holding pattern in the near term.

On the other hand, Raymond James analyst Andrew Marok remains optimistic, stating that the timing of the release is only “mildly” disappointing. Marok reiterates his belief in the game’s significant potential and maintains an Outperform rating on Take-Two’s stock, along with a $170 price target.

Overall, analysts covering the stock have an average price target of $164.28, which implies a 4.5% upside from Tuesday’s closing price. It is expected that most of this upside will be realized in Wednesday’s trading.

Take-Two’s stock has already made impressive gains in 2023, surging over 50% due to the anticipation surrounding the release of GTA VI. Despite a brief dip following the announcement, the stock has quickly recovered. Further positive news regarding Grand Theft Auto may have the potential to drive the stock even higher in the future.