Piper Jaffray Lowering Price Target On Take-Two Interactive (TTWO)

Piper Jaffray is lowering its price target on Take-Two Interactive TTWO from $11 to $10, even though it expects a solid quarter. It rates shares at Neutral. In a note to clients, Piper Jaffray writes, "We remain well above consensus EPS for the July quarter. We think Red Dead Redemption, MLB 2K10 and GTA online content did fairly well during the quarter. We estimate the company will report break-even EPS during the July quarter. Assuming no key titles slip, we expect annual guidance will increase by the level of the July quarter beat. Contrary to the Street, we estimate there is only a 10% chance that the next installment of GTA ships during FY11. Our best guess is that the next GTA launch will occur in the Summer of 2012. And finally, investors expecting a sale of the business will likely be disappointed, as we see few potential buyers." Shares of Take-Two gained 21 cents on Friday, to close at $8.44.