- BMO Capital analyst Gerrick Johnson downgraded Take-Two Interactive Software Inc TTWO to Market Perform from Outperform with a price target of $150, down from $225, implying a downside of 1.24%.
- Johnson is less confident in his previously high on the Street earnings estimates after a series of video game release delays, which he calls a "disconcerting trend."
- Johnson expects Take-Two's valuation multiple to remain under pressure, owning to "exogenous events" like new Chinese gaming regulations and closer scrutiny of video games companies, including content in Grand Theft Auto.
- Further, the scrutiny comes amid a heightened environmental, social, and governance focus among institutional investors.
- Related Content: Electronic Arts Defers Battlefield 2042 Launch To 19 November
- Also Read: NetEase Stock Plummets As China Limits Gaming Time For Minors
- Price Action: TTWO shares traded lower by 1.24% at $150.00 in the premarket session on the last check Friday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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