The research firm Piper Sandler has released a new investor report covering Take-Two, the owner of Rockstar Games and the GTA franchise. The report gave Take-Two's stock a "overweight" rating (which implies growth potential), with Piper Sandler setting a new price target for the stock of $280. The company's stock closed at $226.98 on June 1. Take-Two's all-time high is about $265, so Piper's prediction would beat that.
What's driving the enthusiasm? GTA 6, of course. Piper Sandler said some of the near-term catalysts for Take-Two's stock includes a third GTA 6 trailer, preorders going live, and the game's marketing campaign kicking off.
Piper Sandler predicted GTA 6 to reach sales of about 35 million units by April 2027, which would amount to about a 30% attach rate on PS5 and Xbox Series X|S, the firm estimated. DFC Intelligence, meanwhile, previously predicted 40 million sales for GTA 6 over its first 12 months.
After launch, GTA 6 could benefit from whatever GTA Online brings to market, along with a second wave of sales when the game comes to PC and PS6 and Project Helix, Piper Sandler said. To be sure, Rockstar has not made any announcements about bringing GTA 6 to next-gen platforms, nor has the developer said a peep about GTA 6's online mode.
These predictions make sense, given GTA Online for GTA 5 has been, and continues to be, a money-printer for Rockstar. Regarding the possibility of expanding to next-gen platforms, that would also fall in line with Rockstar's established playbook. After all, GTA 5 first launched in 2013 on PS3 and Xbox 360 before later getting new versions for PS4 and Xbox One, and then PS5 and Xbox Series X|S.
Additionally, Piper Sandler said it sees a rosy future for GTA 6 (and Take-Two's stock, in return) because "modern live-streaming platforms" like Twitch may be able to help drive even more interest in GTA 6 and convince more people to buy the game. Services like Twitch and other video streaming platforms did exist when GTA 5 was released in 2013, but they have grown substantially larger and more influential since then.
Beyond expected success from GTA 6, Piper Sandler said Take-Two is looking like a good investment right now because the company's mobile division, Zynga, is improving its business. Additionally, Piper Sandler said Take-Two's ability to get more money out of people with its "recurring consumer spending" strategies in games like GTA and NBA 2K is a sign of strength.
"In a consolidating media landscape, Take-Two stands out as a scarce, high-value asset with significant long-term appreciation potential," Piper Sandler said.
GTA 6 launches on November 19 for PS5 and Xbox Series X|S.
