http://biz.gamedaily.com/industry/feature/?id=17564
| Analyst: Take-Two Turnaround Well Underway; BioShock to PS3, Wii? Janco Partners analyst Mike Hickey believes Take-Two is on the right path, and while BioShock is exclusive to Xbox 360 right now, he thinks the blockbuster shooter could be headed to other platforms in the near future. He also expects Mafia 2 to become a platinum seller. |
| While a number of analysts recently expressed skepticism over Take-Two (UBS analyst Ben Schachter called it a "show me stock"), Janco Partners analyst Mike Hickey seems far more bullish on the GTA publisher.
In a new company update research note, Hickey said that "management's turnaround plan is well underway and [we] consider the Company's shares a relative value to both the general market and their competitors in the space. We expect potential upside in their fiscal Q407 reported performance versus management guidance from the stronger than expected sales of BioShock and the release of Manhunt 2, which was originally a Q3 release."
Speaking of the much lauded BioShock, Hickey said that he thinks Take-Two could bring the game to PS3, PS2, Wii and handhelds some time during the company's 2009 fiscal year. In addition, he noted that the next game from 2K Boston/Australia could be released during FY09 as well. Another big contributor, according to Hickey, will be Mafia 2, which "likely will go platinum."
As part of the publisher's turnaround, Hickey believes Take-Two is also going to start raising additional capital in advance of the launch of Grand Theft Auto IV next year. "Additional capital could be used to insure liquidity for working capital needs, fuel potential studio acquisitions, and fund future development projects," he said.
Hickey continued, "Strong recent product releases like BioShock and the upcoming seasonally strong retail holiday sales period has seemingly eased some of the market's liquidity concerns for the Company. That said, we expect management could choose to raise capital now, leveraging a higher share price, investor enthusiasm over the GTA IV release, the franchise potential of BioShock and their strong fiscal '08 guidance. We think management will favor raising capital through a convertible offering, which we expect could be roughly $100 to $150 million."
Janco has issued a $27 target for Take-Two stock (TTWO) and a 'Buy' rating.
bioshock coming to PS3/PS2/Wii/Xbox360 + handelds in 2009. My personnal view about this : BullShit.... |
Time to Work !
