The highly anticipated "Grand Theft Auto 6" video game from Take-Two Interactive Software won't be out until early 2025 but news about the title has boosted player engagement in older games in the franchise, according to an analyst. And that's a positive for TTWO stock.
Baird analyst Colin Sebastian said "Grand Theft Auto 5" and "Grand Theft Auto Online" have seen a strong lift in engagement since Take-Two released the first trailer for "GTA 6" on Dec. 4.
"Based on our analysis of active player data from Steam, we estimate daily peak players of GTA 5/Online are tracking roughly 50% higher year over year since the Dec. 4 release of trailer one for 'Grand Theft Auto 6,' " he said in a note to clients late Wednesday.
The increased engagement could lead to an increase in bookings for the company's December quarter, he said.
"It seems clear that the trailer inspired a strong increase in interest for GTA," Sebastian said.
'Grand Theft Auto 6' Lifts TTWO Stock
Sebastian rates TTWO stock as outperform with a price target of 160. On the stock market today, TTWO stock rose 0.3% to close at 161.47.
On Nov. 14, TTWO stock broke out of a 17-week consolidation pattern at a buy point of 153.84, according to IBD MarketSmith charts. The breakout occurred several days after the company's September-quarter earnings report and the announcement of "GTA 6."
Take-Two hasn't given a specific date for the release of "Grand Theft Auto 6," saying only that it will come out in 2025. However, the company's guidance implies that it will come out in the fourth quarter of its fiscal 2025, which ends in March 2025, Sebastian said.
Take-Two ranks fifth out of 20 stocks in IBD's Computer Software-Gaming industry group, according to IBD Stock Checkup. TTWO stock has an IBD Composite Rating of 58 out of 99.
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