Take-Two was falling 12.1% to $16.62 Tuesday.
Analyst Michael Pachter said the downgrade is due to lack of visibility. "We believe that investors should be cautious about the company's product pipeline; although Take-Two has consistently produced successful games, it has not produced a sufficient number of them to generate consistent profits," Pachter wrote.
The analyst continued, "In our view, it is impossible to model EPS without knowing the company's lineup and assigning likely revenue levels to each game; by refusing to provide visibility into its lineup, Take-Two management has abdicated its obligation to its shareholders, and we believe that investor dollars would be better directed to other publishers under our coverage."
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The downgrade comes a day after Take-Two posted record earnings thanks in large part to Grand Theft Auto V.