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Take Two’s Grand Theft Auto 6 Should Drive Up Stock, Wall Street Salivating for Big Gains

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The excitement around Grand Theft Auto 6 has reached a fever pitch. Wall Street is buzzing with the expectation that it will be a β€œmajor catalyst” for Take Two (NASDAQ:TTWO), the brains behind it all.

The imminent release of the latest installment in the series is anticipated to generate immense enthusiasm for Take Two, the parent company of GTA publisher Rockstar Games, as per Benchmark analyst Mike Hickey. With a Buy rating and a $164 price target on the stock, Hickey believes that the game’s release could significantly boost TTWO’s growth in fiscal years 2025 and 2026.

β€œThe anticipated release of Grand Theft Auto Next is likely to boost TTWO’s growth significantly in fiscal years 2025 and 2026,” Hickey indicated in a note. The date for the release trailer was announced by Rockstar on Twitter, scheduled for December 5, at 9 a.m. EST.

While sales estimates for the game are scarce, some experts speculate that it could rake in over $1 billion in revenue in its opening week and sell up to 14 million copies at launch. To put this in perspective, the highest-grossing movie of all time, Avengers: Endgame, had a global opening of $1.2 billion.

Hickey also noted that Grand Theft Auto Online Next, the online service which includes updates and existing content, could potentially add up to $1 billion in annual live service revenue. The online service has a history of boosting engagement over the past decade, and Rockstar is anticipated to release a downloadable content update later this month.

Take-Two (TTWO) declined to comment on this story despite requests.

Benchmark’s Hickey believes that Take-Two (TTWO) might be an attractive takeover target, especially in the wake of Microsoft’s (MSFT) $69 billion acquisition of Call of Duty maker Activision Blizzard, which could prompt other firms to seek similar deals.

Raymond James, in October, intimated that the upcoming game is poised to deliver impressive numbers, echoing earlier sentiments by Deutsche Bank and investment firm Baird.

Netflix (NFLX) has also jumped on the Grand Theft Auto bandwagon, announcing that it will offer Grand Theft Auto: The Trilogy β€” The Definitive Edition to subscribers at no extra cost.

Investors have been quick to latch onto the excitement surrounding Grand Theft Auto, evident in the 53% surge in Take-Two (TTWO) shares year-to-date, outperforming the gains in the S&P 500 and tech-heavy Nasdaq.

Take-Two (TTWO) recently adjusted its multi-year guidance, expecting slightly lower net bookings in fiscal 2025, though analysts view this as a positive sign of the company’s pipeline progressing well.

If the exuberance surrounding the next version of Grand Theft Auto converts into actual sales, Take-Two (TTWO) investors may find themselves in possession of a real-life money cheat code.

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