Take-Two Not Likely to Sell Before Next GTA, S&P Says
Standard & Poor’s analyst Jim Yin today cut his rating on Take-Two Interactive (TTWO) to Strong Sell, from Sell, keeping his price target at $5.50, well below the current level.
“Our downgrade is on valuation and our view of deteriorating fundamentals,” he writes. “Sales of video game software have been declining, and we expect further weakness given the lack of job creation in the U.S.”
He adds that game development costs are likely to keep rising, “as customers limit purchases to top-rated titles.”
