Rockstar Games (TTWO -0.3%) today confirmed some heady fan speculation generated by its tweets, by announcing plans to make Red Dead Redemption 2, a sequel to its hit Western shoot-'em-up. Shares had moved up 5.1% yesterday after cryptic hints.
The game maker promises a "vast and atmospheric world," which looks to build on the open-world format of the previous game, and teases a trailer for it to come Thursday at 11 a.m. ET. It promises a Fall 2017 release on PlayStation 4 and Xbox One.
Mizuho reiterated its Buy rating on parent Take-Two Interactive, along with a $48 price target (implying 7.4% upside), on expectations that the game will repeat its predecessor's smash success.
"Taking a page out of the GTA V playbook, we expect RDR 2 will have a massive single-player action campaign, as well as an online multi-player experience similar to Grand Theft Auto Online," says analyst Neil Doshi.