BMO Capital Markets increased its price target for Take-Two Interactive Software Inc to $285 from $280 and reiterated an outperform rating following the company's confirmation of an $80 base price for Grand Theft Auto VI - above BMO's prior expectation of $70.
The brokerage said the elevated launch price should raise bookings even though it expects fewer premium-edition unit sales. Take-Two plans to debut GTA VI with a single premium edition and no early-access incentive, a setup BMO expects will concentrate initial spend while limiting the number of higher-priced units sold.
BMO framed the announcement as part of a broader industry move testing consumers' willingness to pay more for major titles. The firm noted that Nintendo recently pushed past the historical $70 price point with $80 pricing for its flagship releases, and it views Take-Two's pricing decision as an expression of confidence that demand for a highly anticipated title can remain robust at the higher base price.
Concretely, BMO raised its fiscal 2027 bookings forecast by 1.5% to $10.65 billion. That projection sits roughly 31% above the midpoint of Take-Two's initial guidance for the fiscal year. BMO did not change its assumptions for launch units, keeping them at 45 million units for the fiscal third quarter and 10 million units for the fiscal fourth quarter, and argued that the higher base price is unlikely to materially erode demand.
The brokerage also expects Grand Theft Auto VI to act as a multi-year growth driver as Take-Two follows the initial console launch with GTA Online, a PC edition and user-generated content. Those extensions are cited as mechanisms that can prolong monetization and engagement beyond day-one sales.
At the same time, BMO cautioned that Take-Two shares could exhibit volatile trading around the game's release as investors may "sell the news" after major launch-related announcements - a pattern the firm associates with the video game sector around big releases.
Summary
BMO raised Take-Two's price target to $285 and increased its fiscal 2027 bookings estimate to $10.65 billion after Take-Two set an $80 base price for GTA VI. The brokerage left launch unit assumptions unchanged and said the higher price should lift bookings despite fewer premium editions, while warning of potential short-term share volatility around the release.
Key points
- BMO raised its price target on Take-Two to $285 from $280 and kept an outperform rating.
- Take-Two confirmed an $80 base price for Grand Theft Auto VI, above BMO's prior $70 expectation.
- BMO increased fiscal 2027 bookings to $10.65 billion and expects GTA VI to drive multi-year growth via online, PC and user-generated content expansions.
Risks and uncertainties
- Shares may trade choppily around the game's release as investors could "sell the news," a volatility pattern noted in the video game sector.
- The higher $80 base price coincides with a strategy of fewer premium editions at launch - if consumer resistance is stronger than BMO expects, bookings could be affected.