SKN | Wells Fargo Raises Take-Two Interactive Price Target After Q3 Bookings Beat

Keypoints :

• Wells Fargo lifted its price target on Take-Two Interactive to $301 after a clear Q3 bookings and EBITDA beat.

• Management’s confidence around the 2026 release of Grand Theft Auto VI eased investor concerns tied to execution and AI disruption.

• With expectations rising, future upside is increasingly dependent on sustained delivery rather than valuation expansion.

Analyst Moves Signal Growing Confidence

Wells Fargo raised its price target on Take-Two Interactive to $301 from $288, maintaining an Overweight rating after the company reported stronger-than-expected Q3 2025 bookings and EBITDA. The bank described the quarter as a “clean print,” highlighting broad-based strength across the portfolio and disciplined cost execution.

Crucially, management struck a constructive tone on hitting the November 19, 2026 release date for Grand Theft Auto VI. That reassurance addressed one of the market’s biggest overhangs, particularly as fears had built around delays, rising development costs, and the potential disruption of AI-driven content creation.

Reinforcing Signals From the Street

The positive read-through was echoed by BMO Capital Markets, which lifted its own price target to $280 while reiterating an Outperform rating. BMO pointed to comprehensive execution across mobile, NBA 2K, and Take-Two’s broader catalogue, noting that the company appears well positioned to deploy AI technologies at scale rather than be displaced by them.

Together, these updates suggest the market is shifting from a defensive posture  focused on AI risk and development uncertainty  toward a more balanced view that recognises Take-Two’s franchise depth, operational discipline, and ability to absorb new technologies without eroding pricing power.

Valuation Focus Moves From Fear to Execution

With the stock responding positively to the earnings beat and analyst upgrades, valuation sensitivity is now increasing. Much of the near-term multiple expansion has already been driven by relief that execution risks are being managed. From here, further upside is likely to hinge on consistent delivery, steady bookings momentum, and confidence that flagship releases can convert anticipation into durable cash flows.

The bar is now higher. Any slippage in timelines, monetisation assumptions, or engagement metrics would likely be met with a sharper market reaction than in earlier stages of the cycle, when expectations were lower and sentiment more cautious.

Bottom Line

The latest analyst actions reinforce a narrative shift around Take-Two Interactive. What was previously framed as a stock weighed down by AI uncertainty and blockbuster execution risk is increasingly being treated as a high-quality franchise operator with improving visibility and operational control. However, as expectations firm and price targets move higher, the investment case becomes less about rerating and more about sustained performance across releases, platforms, and monetisation cycles.

For a confidential discussion on how entertainment franchise concentration risk, AI-driven operating leverage, and valuation exposure to premium gaming assets can be assessed within a global portfolio allocation framework, contact our senior advisory team.