- Big tech companies could be set to pursue acquisitions of videogame publishers this year, BTIG's Brandon Ross says, giving special attention to what he sees as perhaps the most attractive candidate: Take-Two Interactive Software (TTWO +1.7%).
- Take-Two stock could leg up even if another publisher is bought by the likes of Microsoft (NASDAQ:MSFT), Amazon.com (NASDAQ:AMZN) or Google (NASDAQ:GOOGL), Ross writes.
- But Take-Two is attractive "given it is both digestible and has perhaps the best AAA content in the world," Ross says. That includes continued success of Red Dead Redemption 2, and Ross expects meaningful contributions for Red Dead Online in fiscal 2020, though scale could limit company margins. (h/t Bloomberg)
- He has a Buy rating on TTWO with a price target of $142, implying 33% upside.
- Take-Two is set to report earnings on Wednesday, where consensus sees EPS of $2.76 on revenues of $1.51B.
- Now read: Take Two Interactive Is A Buy Before Feb. 6 Earnings Call
Original article