Morgan Stanley Lifts Take-Two Interactive (TTWO) PT, Maintains Overweight Rating

On Monday, Morgan Stanley raised its price target on Take-Two Interactive Software, Inc. (NASDAQ:TTWO) to $265 from $210, while maintaining an Overweight rating. This comes after the company released its results for fiscal Q4 2025 on May 16.

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) reported robust results with total net bookings growing 17% year-over-year to $1.35 billion. The Q4 bookings and earnings per share both topped analyst expectations by 3%, and Recurrent Consumer Spending (RCS) increased 14% year over year. Morgan Stanley highlighted that this is complemented by the continued popularity of GTA Online, the performance of its mobile gaming division, Zynga, and the standout success of its NBA 2K franchise.

A close-up of a hand holding a game controller, demonstrating the interactive entertainment of the company.

The NBA 2K franchise alone delivered 42% RCS growth, driven by recent gameplay innovation, which led to strong engagement. Moreover, Zynga also topped expectations on the back of Color Block Jam, which, as per Morgan Stanley, became one of the top 10 most downloaded games on the US iOS App Store.

Despite this robust performance, Take-Two Interactive Software, Inc. (NASDAQ:TTWO) delivered a modest market beat in comparison to Morgan Stanley’s expectations. This was due to the soft launch of “Civilization VII” in February, which underperformed the company’s targets. However, the firm maintained an Overweight rating, anticipating long-term prospects for the company driven by the expected spring 2026 release of GTA VI and the upcoming Borderlands 4 release in September.

While we acknowledge the potential of TTWO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TTWO and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 11 Most Promising New Technology Stocks According to Analysts and 12 Best Growth Stocks to Buy and Hold for the Long Term.

Disclosure: None