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Jan 12, 2022
Take-Two (TTWO, $157.02) shares rating boosted at BMO

Take-Two (TTWO, $157.02) shares rating boosted at BMO

Take-Two Interactive shares climbed higher Wednesday, following a rating upgrade from  analysts at BMO Capital Markets.

BMO analyst Gerrick Johnson boosted his rating on the video gaming company shares  to 'outperform'.  Johnson held his price target  at $180 per share.  

The analyst views the group's $12.7 billion acquisition of Zynga as a way to leverage its key video game properties, including Grand Theft Auto and NBA 2k, into the mobile sector.

The analysts noted that 5G network rollouts, cloud gaming and smartphone upgrades are likely to boost mobile gaming’s growth.

"The Covid pandemic has accelerated trends already in motion, including the transition to digital distribution offering higher margins and the opportunity for incremental add-on sales and multi-player online services," Johnson said. "We believe the social network aspect of video games has also come to the forefront for a lot of players."  According to Johnson, Take-Two should view  positively the opportunity to expand scale in the rapidly growing mobile games business. The analyst sees strong potential synergy opportunities, and also thinks that Take-Two is an attractive opportunity in terms of valuation.

Related Tickers: TTWO