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Take-Two stock rises after SunTrust calls it a buy

Emily Bary

Take-Two Interactive Software Inc. shares are up 0.5% in premarket trading Thursday after SunTrust Robinson Humphrey analyst Matthew Thornton began coverage of the stock with a buy rating and $125 target. He sees the company's "NBA 2K" and "WWE 2K" sports franchises as valuable sources of recurring revenue and argues that the company has a promising pipeline ahead. Specifically, he is enthusiastic about the next "Grand Theft Auto" title, which he expects could launch in calendar 2021 and drive $6 to $7 in earnings per share for Take-Two. "Grand Theft Auto" is likely to provide a "north star" for the shares over the next two years, he wrote. The stock has risen 8.4% so far this year, as the S&P 500 has climbed 16%.