Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Video game firm Take-Two Interactive shares are down premarket on Friday after its shares were downgraded by BMO Capital.
BMO Capital analyst, Gerrick Johnson, downgraded the stock saying he was less confident on his previous prediction following a series of game release delays.
Last week, the company's wholly-owned label, Rockstar Games, announced the expanded and enhanced versions of its “Grand Theft Auto V” and “Grand Theft Auto Online” games for PlayStation 5 and Xbox Series X|S, which had been planned for release on November 11, are now scheduled to launch in March 2022 to allow additional time to further polish the final products.
However, Take-Two said it was sticking with its financial forecast for the year with demand “driven by continued strong engagement trends in its existing games.”
However, the disruptions were labelled a “disconcerting trend” by Johnson, and he expects the company's valuation to stay under pressure, especially after new Chinese gaming regulations.
Johnson downgraded Take-Two Interactive's price target to Market Perform from Outperform, lowering the price target to $150 from $225.
On Tuesday, Ascendiant analyst Edward Woo lowered the price target on Take-Two Interactive Software to $198 from $216, keeping a Buy rating on the shares.
So far, premarket on Friday, Take-Two's share price is down 1.38% at $149.80, adding to its year-to-date losses of 26.9%.
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