3 Take-Two Interactive Software Analysts Call Q2 Weak, Praise 'Solid' Zynga

Take-Two Interactive Software, Inc TTWO reported second-quarter results after market close Monday.

Benchmark

Analyst Mike Hickey reiterated a Buy rating, while reducing the price target to $139.

The company’s quarterly results were “disappointing,” as it missed “consensus view on both net bookings and profitability,” Hickey said in a note. "Further, TTWO initiated a conservative view on F3Q22 financial growth and reduced FY23 guidance."

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“We’re cautious conditions in FY24 could remain difficult….We have reduced our frontline growth expectations based on concerns over TTWO’s ability to deliver games, limited visibility, and deteriorating credibility,” the analyst wrote.

Morgan Stanley

Analyst Matthew Cost maintained an Overweight rating, while lowering the price target from $190 to $150.

“TTWO reported mixed F2Q results, with Zynga weakness driving bookings/EPS 5%/7% below us,” Cost wrote in a note. He added that Zynga could remain “an overhang until investors become confident that mobile gaming has bottomed.”

Raymond James

Analyst Andrew Marok reaffirmed a Market Perform rating on the stock.

“While Zynga recorded solid engagement and mid-teens growth in advertising revenue, in-app purchase revenue was pressured by ongoing macro softness,” Marok said. “While core trends were decent in F2Q23, it was not enough to outweigh the magnitude of the mobile decline, which we think is going to take some time to reverse."

TTWO Price Action: Shares of Take-Two Interactive Software were trading at $96.26, down by 11.20% at the time of writing Tuesday.