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.
View original post 209 more words