Jefferies has taken a more bullish stance on Take-Two Interactive Software Inc. (NASDAQ: TTWO) and Electronic Arts Inc. (NASDAQ: EA). The firm predicts that the big gains experienced by both companies over the past few years will continue on both industry and company-specific tailwinds.
As for the industry tailwinds, there is an increasing penetration of current-generation game consoles, which is beneficial to each of these companies, allowing for more games to be playable. Ultimately this will result in increased margins for both companies and continued stock gains.
EA is considered to have one of the strongest “multiyear game pipelines” that Jefferies has ever seen.
Take-Two was raised to a Buy rating from Hold with a price target of $35 (versus a $29 prior target and a $28.01 close) at Jefferies. The stock has a consensus analyst price target of $33.49 and a 52-week trading range of $20.13 to $30.80.
Other analysts recently had this to say about Take-Two:
- Brean reiterated a Buy rating with a $32 price target.
- Cowen upgraded it to Outperform from Market Perform and increased the price target to $36 from $32.
- Piper Jaffray has a Buy rating with a price target of $34.
EA was upgraded to a Buy rating from Hold and the price target was raised to $80 from $58 (versus a $66.58 close) at Jefferies. EA has a consensus price target $67.13 and a 52-week range of $31.77 to $67.49. This is a new street-high target, as the prior one was $75.00.
ALSO READ: 5 Analyst Picks Called to Rise 50% to 100%
Other analysts had this to say for EA:
- MKM Partners reiterated a Neutral rating.
- Wedbush reiterated an Outperform rating.
- Brean reiterated a Buy rating and increased the price target to $75 from $66.
So far in 2015, EA shares have gained nearly 42%, and they are up 80% over the past year. Take-Two has not necessarily had a strong 2015 and is relatively even year to date, but shares are up about 30% over the past 52 weeks.
Shares of EA were up 1.9% at $67.81 Wednesday morning. At the same time, Take-Two shares were up 2.4% to $28.68.
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
