Analyst Note| Neil Macker, CFA |
Take-Two posted yet another strong quarter as fiscal 2021 third quarter revenue and EBITDA handily beat FactSet consensus expectations. The firm’s core titles remain key beneficiaries of the gamers staying at home due to the pandemic. The updated fiscal 2021 guidance now calls from net bookings to be up from 13% to 14% year over year despite the company not releasing any new major, non-annualized titles in fiscal 2021, further demonstrating the strength of the core franchises. We keep our narrow moat rating and raise our fair value estimate to $184 from $174 due to a stronger fiscal 2021 outlook and continued margin expansion from the higher-than-expected digital uptake.