TTWO Stock Forecast & Price Target

Take-Two Interactive's revenue and EBITDA estimates for FY'27 have increased by approximately 2%, primarily due to strong engagement levels with the NBA 2K franchise, which is expected to see a high-20% growth and contribute significantly to overall sales. The company's recurrent consumer spending (RCS) is projected to grow by 17% for the full year, driven by robust momentum across all franchises, with NBA 2K likely generating record annual net bookings and RCS. Furthermore, the successful integration of Zynga has shifted the sales composition, with mobile now accounting for nearly half of total sales, enhancing long-term growth prospects and diversifying revenue streams.

Take-Two Interactive is facing significant challenges that contribute to a negative outlook on its stock, primarily due to dependency on the success of future releases like GTA VI, which is projected for May 2026. There is increasing backlash against the company's reliance on formulaic releases and over-monetization strategies, which could lead to diminished engagement from players and potentially disappointing sales for upcoming titles, including Borderlands 4. Additionally, intensified competition in the mobile gaming sector, coupled with the rising costs of marketing, may further pressure the company's margins, indicating a risk of lower financial performance moving forward.