Wedbush has added Take-Two Interactive (NASDAQ:TTWO) to its Best Ideas List and reiterated an Outperform rating with a $300 price target on the video game publisher. The move accompanies a broader Wall Street positive consensus, with InvestingPro data showing an average recommendation of 1.31.
The research note from Wedbush points to what it calls a "fundamental mispricing of near-term risk" after Take-Two’s stock declined on Friday, January 30 alongside peers in the so-called "Generative Gaming" cohort, including Roblox and Unity. Wedbush’s analysts framed that sell-off as excessive relative to the company’s underlying prospects.
Central to Wedbush’s view is its assessment of Google’s Project Genie. The firm characterizes Project Genie as "a tool, not a competitor" to the "Hyper-Premium" offerings that Take-Two produces. According to Wedbush, that distinction means the market reaction may have been overstated.
On valuation, Wedbush notes Take-Two trades at 22 times its "relatively conservative" fiscal year 2028 earnings-per-share estimate of $9.88. That multiple sits within the stock’s historical trading range of 20-25 times prior to the release of Red Dead Redemption 2. Wedbush argues the case for a premium to those historical ranges, citing the forthcoming Grand Theft Auto VI release, which the firm expects to be "significantly larger," and an ongoing "structural shift from a hits-driven model to one backed by high-margin recurring revenue."
Investors should also weigh an upcoming catalyst: Take-Two is scheduled to report earnings on February 3, a date Wedbush and other market participants suggest could produce meaningful stock movement.
Several other brokerages have recently commented on Take-Two. Jefferies maintained a Buy rating and set a $300.00 price target ahead of the fiscal third-quarter 2026 earnings report, predicting the quarter will be "mostly uneventful" following the previously announced delay of Grand Theft Auto VI. Wells Fargo raised its price target to $288.00, pointing to improved expectations for the company’s gaming portfolio. TD Cowen reiterated a Buy rating with a $284.00 price objective, describing Take-Two as a "top-tier operator" in the global video game market.
Not all data points are uniformly positive. Raymond James highlighted mixed performance metrics for November, noting declines in Grand Theft Auto V and unexpected falloffs in NBA 2K26 that contrast with earlier favorable commentary. These mixed signals arrived as Google’s announcement of Project Genie access corresponded with a broader sell-off in video game stocks, a dynamic highlighted by multiple analyst updates.
The convergence of renewed analyst support, varying short-term sales trends among key franchise titles, and an imminent earnings release frames a complex near-term outlook for Take-Two. Wedbush’s rationale leans on both the franchise pipeline and recurring-revenue dynamics as reasons the company could justify a premium valuation going forward.