Citi Upgrades Take Two, Price Jumps

| About: Take-Two Interactive (TTWO)

Take-Two Interactive (NASDAQ:TTWO) shares are sharply higher following the company’s announcement Tuesday night of earnings for the fiscal fourth quarter ended October.

The shares had traded lower in the after-hours session, but have completely turned around. The earnings for the quarter were in line; first quarter guidance was disappointing; the full year guidance apparently was a reiteration of a previous projection. Meanwhile, the company confirmed that it still plans to ship Grand Theft Auto IV in its fiscal second quarter ending April.

Citigroup’s Brent Thill this morning raised his rating on the stock to Buy from Hold, upping his price target to $25 from $23.

He gave three reasons to buy the stock:

  • More comfortable with time of the GTA IV release.
  • Company could be acquired.
  • Sentiment overly bearish, with 32% of the float sold short.

Take Two shares Wednesday are up 92 cents, or 5.1%, at $18.95.