JPMorgan says that Take-Two Interactive shares look appealing after this year’s pullback. JPMorgan rated Take-Two as overweight on Thursday after it had been restricted for a while. JPMorgan also established a $175 price target for the stock. This implies that there is 33.2% upside. Take-Two shares are down about 26% in 2022, underperforming the S & P 500’s more than 13% decline. While there is always risk in the integration and pipeline projects, current valuations offer a level of safety that is well-balanced by possible upside. We note that TTWO is one of the few stocks with both growth and value, and little risk from macro factors like inflation or recession. JPMorgan’s David Karnovsky wrote in a note. The company behind franchises such as Grand Theft Auto and NBA 2K completed its acquisition of mobile gaming firm Zynga in May. “Take-Two’s valuation, we believe, reflects low sentiment about mobile gaming overall. The sector is still struggling to navigate the platform privacy changes. Karnovsky indicated that we expect these headwinds in the coming quarters. JPMorgan is optimistic that Take-Two will be able to expand its mobile portfolio, as mergers and acquisitions are less common at this time. Take-Two’s future content plans are a strong focus of JPMorgan. Kernovsky indicated that Take-Two has a major content ramp up. We estimate that 13 additional immersive core games will be released over the next three-years, excluding annual sports titles like NBA 2K and PGA 2K. This includes what has been announced. —CNBC’s Michael Bloom contributed reporting.
