TTWO Stock (TTWO):Bullish New Coverage As GTA 6 Expected To Dwarf Previous Launch

Take-Two Interactive's stock (NASDAQ: TTWO) has been given a vote of confidence by those at Wells Fargo today, with an initiation of coverage showing the firm to be very bullish on TTWO.

While recent performance has been solid, with gains of 22.7% for the stock since the start of the year, a new bullish outlook from Wells Fargo, coupled with historical precedent, suggests the potential for further upside, but not without risks.

Wells Fargo initiated coverage on TTWO with an Overweight rating and a $265 price target. This positive assessment hinges largely on the projected success of GTA 6.

The firm anticipates the game will sell a staggering 50 million units in its first year, generating substantial revenue at an $80 price point. This projection dwarfs the 32 million units sold by GTA 5 in its launch year, a testament to the franchise's enduring popularity and the heightened anticipation surrounding the new installment.

Wells Fargo's bullish stance extends to earnings estimates, forecasting figures above the Street consensus for fiscal year 2027, fueled by the expected GTA 6 windfall.

The delay of GTA 6 from its initially anticipated 2025 launch to May 2026 initially sent ripples of concern through the market, causing a dip in Take-Two's share price. The delay raised concerns about the console gaming sector's growth prospects for 2025. However, the subsequent release of a trailer ignited a renewed wave of enthusiasm, amassing a staggering 475 million views in 24 hours and highlighting the franchise's unparalleled marketing power.

Despite the optimism, key risks remain. Take-Two's reliance on blockbuster releases, particularly GTA 6, introduces significant execution risk.

Any missteps in development, marketing, or distribution could severely impact sales and confidence. Furthermore, some analysts suggest that the current stock price already reflects a premium for the anticipated GTA 6 gains, potentially limiting further upside and increasing volatility around the game's release.

With launch day around 10 months away, there will be plenty of fundamentals to pick through before we get to GTA 6.