Home Investing Cowen names Take-Two stock its best idea for 2023

Cowen names Take-Two stock its best idea for 2023

by

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.

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.  

The post Cowen names Take-Two stock its best idea for 2023 appeared first on Invezz.

You may also like