In the latest report by analyst Alex Giaimo from Jeffries published on Thursday, GTA VI’s release date will not be any time before 2022. Take Two Interactive stocks are also below the estimation.
Without a doubt, Rockstar Games’ Grand Theft Auto V (GTA 5) is one of the most influential and successful games of the past decade if not of all time. With millions of fans still playing the game to this date, GTA V remains one of the best open-world games of all time. This is one of the reasons fans still look forward to Rockstar Games’ announcing the next installment (GTA VI) and its release date.
With this much hype built around a game that isn’t even announced, GTA VI is one of the most anticipated games of recent time. We have also seen a lot of continuous leaks and rumors regarding GTA VI and its release date, most of them have pointed towards a 2020 or 2021 release date.
And now according to the latest estimation by industry analyst Alex Giaimo from Jeffries, GTA VI’s release date is still far off, around 2022.
“Take-Two possesses the most high-quality content amongst the U.S. publishers, yet valuation feels full,” he wrote. “We struggle to find a near-term catalyst to push the multiple much higher at these levels…Despite the undeniable success of GTA & RDR [Red Dead Redemption series], we believe Take Two Interactive is now in a ‘soft spot’ when considering the timing of the next release.”
Earlier this year, Take-Two stock (ticker: TTWO) was up about 13% in 2019, compared with a 19% rise for the S&P 500. We also saw Take-Two Interactive publish a report in which their adjusted revenue was around $488.4 million for the fiscal fourth quarter, missing the Wall Street consensus estimate of $507 million.
In his report, Giaimo also notes that Take-Two trades at a more than 10% valuation premium to its peers Activision Blizzard (ATVI) and Electronic Arts (EA) at the current moment. Interestingly, Take-Two stock was down 1% to $116.01 on Thursday.
Giaimo estimates $115 price target for Take-Two stock, which is below the former forecast of $135. So if GTA VI’s release date still is far off for 2022, it may not be the best time to buy loads of Take Two Interactive’s stocks.