Take Two Interactive Software’s latest valuation update keeps the fair value estimate anchored near US$277.40, while the discount rate is adjusted slightly to reflect a marginally lower assumed risk profile. The outlook for core revenue growth remains essentially unchanged as analysts weigh strong involvement in NBA 2K and mobile against more cautious voices around GTA 6 expectations in the near term. Stay tuned to see how you can stay on top of these evolving stories and what to look for as sentiment evolves around upcoming titles and trends in live services.
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🐂 Bullish takeaways
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Roth Capital raised its price target on Take-Two from $265 to $295, pointing to FY26 as a transition year ahead of the planned launch of GTA 6 and highlighting a revived NBA 2K franchise and stable mobile contribution as key support for its long-term earnings profile.
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DA Davidson raised his price target from $270 to $300 after tracking engagement metrics such as hours, sessions and share of top games played, and pointed to NBA 2K activity in September 2025 as evidence, in his view, that live services are helping to sustain the company.
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Bullish analysts generally view stronger NBA 2K engagement and consistent mobile performance as signs that year-over-year live service and title execution supports current valuation and provides a foundation for future growth, even before new GTA updates.
🐻 Bearish Takeaways
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Arete has shifted its rating on Take-Two to Neutral from Buy with a price target of US$280, signaling a more cautious stance from current levels and implying that some of GTA 6’s expected upside may already be reflected in the stock price.
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On the more cautious commentary, near-term risks tend to focus on the timing and visibility of GTA 6-related updates, as well as the possibility that expectations for significant earnings growth are already embedded in the valuation, which could limit near-term revaluation even if execution remains solid.
Do your thoughts match those of the Bull or Bear analysts? Maybe you think there’s more to it. Visit the Simply Wall St Community to discover more perspectives or start writing your own story!
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Rockstar’s 2010 title “Red Dead Redemption” is expected to come to mobile and Netflix’s gaming platform on December 4, 2025, with mentions also pointing to new versions for PlayStation 5, Xbox Series X/S and Nintendo Switch 2.
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“Grand Theft Auto V” and “Red Dead Redemption 2” both rank in the top ten in European sales, alongside major releases from EA, Nintendo, Microsoft and Square Enix, highlighting the continued interest in Take Two’s catalog titles.
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Rockstar Games is facing criticism from a British union, which has accused the studio of union fraud after firing between 30 and 40 employees in Britain and Canada, with the company attributing the dismissals to gross misconduct.
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Fair value estimate: Unchanged at approximately US$277.40. The modeled long-term intrinsic value remains the same.
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Discount rate: slightly adjusted from approximately 9.20% to 9.17%, indicating a marginally lower assumed risk profile in the model.
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Revenue Growth: Essentially unchanged at approximately 15.08%, reflecting a steady outlook for long-term revenue expectations based on current assumptions.
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Net profit margin: approximately 13.24%, indicating only a very modest improvement in the long-term profitability assumption.
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Forward Price-to-Earnings Ratio: Moved from approximately 61.05x to 60.99x, a very small reduction in the forward earnings multiple used in the valuation work.
Narratives on Simply Wall St allows you to connect a company’s story to the numbers by laying out your vision of the business, linking that to forecasts for revenue, profit and margins, and then linking this to a fair value estimate. They’re on the Community page, easy to understand, and updated as news or earnings come in, so you can compare fair value to current price and decide if the stock still suits your plan.
Check out the full context behind Take Two Interactive Software’s current take on the original story here:
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How mobile, in-game content and direct distribution are used to support margins and profit stability.
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Why expansion into new platforms and a full release slate could impact future growth and profitability, in addition to analysts’ revenue and profit assumptions through 2028.
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What risks around dependence on key franchises, rising costs, changing gamer behavior and competition could mean for the Fair Value compared to the current price.
Read the full Take Two story on Simply Wall St to see how these moving parts come together into a single, trackable story and valuation view.
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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. We aim to provide you with targeted, long-term analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or quality material. Simply Wall St has no positions in the stocks mentioned.
Companies discussed in this article include TTWO.
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