Take-Two (TTWO) Stock Pops as ‘Red Dead 2’ Picks up Strong Momentum; Top Analyst Weighs In


This morning, Take-Two (TTWO) and Rockstar announced launch weekend global sell-through of over $725 million for Red Dead Redemption 2 over the first three days, the largest opening weekend in entertainment industry history. In reaction, Take-Two shares jumped nearly 8% to $120.61 as of 10:41AM EDT.

Baird’s top analyst Colin Sebastian estimates roughly 11 million units sold over the period, which is consistent with strong pre-order volumes.

“While slightly lagging the tough $1 billion comparison in three-day sell-through from the 2013 launch of Grand Theft Auto V, we view the launch of RDR2 as a clear success. For further context, Activision Blizzard’s Call of Duty: Black Ops 4 reported over $500 million in sell-through during its opening weekend,” Sebastian noted. “Take Two disclosed RDR2 was the most pre-ordered game in PlayStation Network history, and also broke one-day and three-day PSN sales records. Given the comparable launch review scores (98 on Xbox One vs. 97 on PS4), we anticipate unit sales trends were strong across both platforms, giving us increased confidence in our sales estimates, with upside potential from our F3Q target of ~18 million units and F2019 (March) estimate of roughly 22 million units. We previously suggested upside potential to the 25 million unit over the first six months of sales.”

As such, Sebastian reiterates an Outperform rating on Take-Two with a price target of $140, which implies an upside of 15% from current levels.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Colin Sebastian has a yearly average return of 21.5% and a 64% success rate. Sebastian has a -4.1% average return when recommending TTWO, and is ranked #26 out of 4873 analysts.

Wall Street agrees with Sebastian that this video game maker is one to watch, as TipRanks analytics exhibit TTWO as a Strong Buy. Out of 13 analysts polled in the last 3 months, 11 are bullish on Take-Two stock while 2 remain sidelined. With a return potential of 19%, the stock’s consensus target price stands at $143.92. (See TTWO’s price targets and analyst ratings on TipRanks)

 

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