Take-Two Interactive Software Inc (NASDAQ: TTWO) just couldn’t catch a bottom in 2022 but a Cowen analyst is convinced that next year will be a meaningfully different story for this video game company.
GTA VI is coming soon
Doug Creutz expects the much-anticipated Grand Theft Auto VI to come out in 2024 – but update on its expected release next year alone will be sufficient to lift the stock price, he added.
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The game has always sold millions of units. But as importantly, GTA Online has been a big money earner for them. It does about half a billion per year in revenue. We think the GTA VI launch could take that up to a new level.
Creutz sees potential in GTA Online to eventually bring in as much as a billion dollar in annual revenue. The added interest in sports following the FIFA World Cup, he expects, will benefit the likes of Take-Two’s NBA franchise.
Down 45% year-to-date, Take-Two stock is attractive in terms of valuation as well.
Buy Take-Two stock for a 50% return
Other reasons for his constructive view on the Nasdaq-listed firm include expected return to growth in mobile gaming.
Interestingly, the Cowen analyst sees Take-Two Interactive Software Inc as a metaverse stock as well. On CNBC’s “TechCheck”, he said:
If there’s a platform that’s closest to metaverse, it’s actually GTA Online. If the metaverse isn’t populated with great content, no one will show up. So, I believe that Take-Two’s content will be in demand there.
Last month, the company lowered its guidance for the future (link). Still, Creutz sees upside in Take-Two stock to $147 – a whopping a 50% premium on its current price.
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