MKM Downgrades Take-Two On Valuation

It's not completely clear what might be coming this year and when from game makers Take-Two Interactive Software, Inc TTWO, MKM Partners said in a Friday note.

The Analyst

MKM's Eric Handler downgraded Take-Two from Buy to Neutral and lowered the target price from $142 to $133.

The Thesis 

"We like the company but shares lack visibility and valuation looks full," Handler wrote in a note.

Handler said he continues to view Take-Two as the "best-run publisher in the video games space," with a strong portfolio of games, but is increasingly unsure of the company's pipeline for 2021.

"We are becoming more and more convinced Take-Two's FY21 release slate will include a below-average number of non-annualized, AAA game releases, and, as a result, consensus estimates are too high," Handler said.

Price Action

Take-Two shares are down 2.61% to $125.70 at time of publication Friday.

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