Investing.com -- Take-Two Interactive (NASDAQ: NASDAQ: TTWO ) has been labeled as a top non-AI stock idea by Mizuho (NYSE: MFG ) TMT Sector Specialist Jordan Klein. Klein, who initially pitched the stock in the second half of December last year, noted that the stock has risen 18% year-to-date. He continues to encourage clients to consider the stock, regardless of the recent increase.
Klein also highlighted that a new sell-side firm, DA Davidson, initiated coverage of Take-Two Interactive today with a buy rating and a target price of $250. The firm's target price aligns with Klein's previous suggestions of a $230-250 range upside for the stock. DA Davidson's valuation is based on a 23x EV/EBITDA multiple on 2026 or a 32x price-to-earnings ratio.
DA Davidson analyst Wyatt Swanson commented on the initiation of coverage, stating that Take-Two Interactive's intellectual property is extremely strong. He also noted that the company's current release slate indicates a busy calendar year 2025. Swanson expressed confidence that Take-Two can grow Net Bookings by more than 40% year-over-year in fiscal year 2026.
Swanson's analysis indicates that Take-Two's talent, long-lasting playership, and momentum set the company up to outperform in fiscal years 2026 and 2027. He expects the company to gain market share while expanding margins during this period.
Klein, in his interaction with clients, emphasized that the average share price increase for Take-Two is 80% from title announcement to title release. He also pointed out that the average stock increase for the company in the nine months prior to release is 26%.
He noted that since the initial video trailer for the much-anticipated GTA6 game in mid-December 2023, Take-Two's stock has increased a total of 38%. This is significantly less than the 180% and 140% stock performance seen from trough to peak during the past two GTA game cycles.
Klein remains bullish on Take-Two Interactive, encouraging clients to consider the stock for its potential upside.
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