The security has earned an upgrade to “Buy” and an increase in the price target to USD 231
The shares of Take-Two Interactive Software, Inc (NASDAQ: TTWO) are up 0.9% to trade at $ 178.50 this morning after the Jefferies stock was upgraded from Hold to Buy and its price target was raised from $ 185 to $ 231. The brokerage firm noted that it believes the technology name will grow over the medium and long term, given a multi-year build of content that will come to fruition over the next few years. The company also announced yesterday that it had acquired Nordeus, a private mobile game developer, for around $ 378 million.
The stock has experienced some volatility since rising to an all-time high of $ 214.91 on February 8. Since then, stocks have struggled with overhead pressures at the $ 189 level since bouncing off the 320-day moving average in May. However, the 60-day moving average has contained the security’s recent pullback and TTWO remains up 36.8% year-over-year.
Analysts were already overwhelmingly bullish on the stock today, with 12 of the 19 stocks in question rated “Buy” or better, while the remaining seven said “Hold” or worse. Plus, the 12-month consensus target of $ 221.58 is already a whopping 23.9% premium to current levels.
Additional tailwind could come from a shift in option pits, which have been more bearish than usual. This corresponds to the 50-day put / call volume ratio of TTWO on the International Securities Exchange (ISE), the Cboe Options Exchange (CBOE) and the NASDAQ OMX PHLX (PHLX), which are picked up at 84 faster than normal.
In addition, TTWO is currently offering prizes that are attractively priced. The stock’s Schaeffer’s Volatility Index (SVI) of 26% is in the extremely low fifth percentile of its 12-month range, suggesting that option players are pricing in low volatility expectations.
Last but not least, security Schaeffer’s volatility scorecard (SVS) ranks 80 out of 100, which means the stock tends to exceed those volatility expectations – a boon for option buyers.