Take-Two Interactive (TTWO) Stock Price Target Lowered at Jefferies
NEW YORK (TheStreet) -- Take-Two Interactive Software (TTWO) - Get Report stock price target was lowered this morning to $45 from $48 but its "buy" rating maintained at Jefferies.
Despite solid fiscal 2016 fourth quarter results, the price target adjustment reflects the fact that the company's developer Rockstar Games will not release its "big, new game" until 2018, the firm said in an investor note.
Yesterday, Take-Two reported fourth quarter earnings of 46 cents per share on revenue of $342.51 million, surpassing Wall Street estimates of earnings of 25 cents per share on revenue of $305.95 million.
"Results were well above outlook on continued strength of Grand Theft Auto," Jefferies noted, but analysts still lowered the price target primarily because Rockstar's game is "on the horizon" for 2018.
Take-Two is a New York City-based developer and publisher of interactive entertainment through its two labels Rockstar Games and 2K.
Shares of Take-Two are soaring 4.02% to $37.12 early Thursday afternoon.
Separately, TheStreet Ratings rated Take-Two Interactive Software as a "hold" with a score of C.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon.
Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
The primary factors that have impacted this rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins.
However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
You can view the full analysis from the report here: TTWO
