This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXNPEC0D0AP_M.jpg
Bank of America analysts downgraded the rating from Buy to Neutral on the assumption of a delayed launch for the highly-anticipated Grand Theft Auto VI video game.
“Not all investors are willing to extend duration beyond 15 months,” the analysts said.
The analysts anticipate the GTA 6 will launch in the fall of 2025, contrary to consensus forecasts predicting an earlier release in the first quarter of that calendar year.
As a result, BofA sees a 20% cut to the FY25 revenue forecast before August next year.
“Based on investor inquiry patterns, participation has broadened meaningfully since the stock bottomed a year ago. We expect further broadening of participation into the launch, which dampens downside price risk, but we do not see significant further upside potential for now,” the analysts added.
The price target is set at $170, implying an 8.1% increase from the last price.
