Take-Two Interactive Software (TTWO) shares have not included the Grand Theft Auto VI launch and the growing mix of high-margin recurring revenue, Wedbush said in a note Monday.
The report pointed to the stock trading at just 25 times consensus estimates of 2028 EPS and 23 times of 2029 EPS, which is not "incorporating" the scale of the launch.
"That is too cheap for a company with a locked November 19 GTA VI launch date and pre-order volume that management
characterized as exceptional, and more importantly, a recurring revenue base far larger and more durable than the one it carried into prior cycles," the report said.
Wedbush reiterated its outperform rating and $300 price target, and keeping the stock on its Best Ideas List.
Price: $250.34, Change: $+3.84, Percent Change: +1.56%