Red Dead Redemption 2 is closer to release as it has ever been and it is expected to be a blowout. And due to the higher pre-order numbers and Q1 performance of Take-Two, analysts predict the company’s stock to touch $145. The previous prediction was $140.
Earlier this month Take-Two released Q1 earnings and exceeded their own expectations. According to the data shared by the company, revenues stood at $388M for the first quarter with a 62% boost in recurrent earnings. 81% or $315M of the company’s revenue comes from digital player spendings.
Digital revenue is up by 64% compared to last year.
The first in-game footage of the title was released recently and upon the reveal of the footage, the stocks touched $130 dollars. According to analyst Gordon Maclean, one can expect the trend to continue. The stocks can touch $145 upon the release of Red Dead Redemption 2.
“Red Dead Redemption 2”, investors should be looking towards the stock of TTWO as Red Dead Redemption 2 is looking to be an extremely popular hit with the potential for continued success that GTAV has shown over the last few years. I last touched on TTWO back in March, where I gave the stock a $140 price target. I am increasing my target from $140 to $145 with this article on the basis that the company continues to show impressive revenue growth and the fallout from the RDR2 release could have an effect across the industry.
Red Dead Redemption 2 is releasing on October 26 for PS4, Xbox One, and PC. If the title features a multiplayer mode like GTA Online, expect recurrent player earnings to go significantly higher for the company.
Microtransactions are a concern for the community but not for Take-Two, the company explained.