Analysts are bullish on TTWO shares after Gamescom 2024 by Investing.com

Wall Street expressed upbeat comments following the Gamescom 2024 event, where the video game giant Take-Two Interactive (NASDAQ: ) made some significant announcements. TTWO shares closed 2.8% higher on Tuesday.

The European Gamescom convention opened with surprise announcements that Borderlands 4 from 2K’s Gearbox studio and Mafia: The Old Country from 2K’s Hangar 13 are set to release in calendar 2025 (FY26).

The trailers shown by TTWO were short and didn’t offer a specific game or release dates, only pointing to a 2025 release.

“With no prior leaks, the surprise 2025 release dates of Borderlands 4 and Mafia at Gamescom give us added confidence to raise our FY26 and EPS bookings,” the analysts commented. They now project that FY26 bookings will exceed $8.1 billion.

“The conversation is already turning to how TTWO plans to fit all this content into 2025 without cannibalization, and whether this could mean a potential GTA delay, although we don’t think so,” the analysts continued. “GTA has technically already been delayed and this could be the side effect.”

The announcements prompted analysts to further raise their FY26 EPS estimate to $7.02, up about $1.50 over the past six months. However, they caution that questions remain over the timing of launches in FY26 and whether TTWO can sustain bookings growth in FY27 after strong anticipated growth of 44% in FY26.

Separately, analysts believe that both Borderlands and Mafia will contribute significantly to FY26 bookings. They now estimate $500 million in bookings from Borderlands 4 (10 million units) and $250 million from Mafia: The Old Country (5 million units) in FY26.

As such, the bank has adjusted its forecast, moving Borderlands 4 into FY26 from its previous FY27 slot, and is now modeling $8.8 billion in net bookings for FY26 and $9.0 billion for FY27.

They expect upward revisions in FY26 bookings and EPS estimates across the board, as many sell-side analysts have likely overlooked both titles.

With this adjustment, the bank’s estimate of net provisions for FY26 is now at the high end of Street expectations.
Looking ahead to FY27, they still forecast higher net bookings year-on-year, driven by growth in GTA Online following the launch of GTA 6 and contributions from other major AAA releases such as Max Payne Remake and BioShock.

“While investors focus on GTA 6’s release timeline, we believe the latest title announcements showcase the potential of the rest of the immersive FY26/27 core plan, which is likely underappreciated,” they wrote.