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Videogames in the holiday pipeline for
Take-Two Interactive
and
Electronic Arts
may sell better than expectations, according to Cowen.
The firm’s analysis of pre-order data “shows that EA’s Star Wars Jedi: Fallen Order and Take-Two’s Borderlands 3 both appear to be tracking ahead of what we believe is embedded in guidance and Street models,” Cowen analyst Doug Creutz wrote in a note to clients Tuesday.
Take-Two stock (ticker: TTWO) was up 1.2% to $131.36 on Tuesday, while EA stock (EA) was up 1.4% to $92.16.
Creutz estimated that Borderlands 3 will sell about 9 million units for videogame consoles, ranking No. 2 in his pre-order analysis. He said Star Wars Jedi: Fallen Order is on pace to sell 12 million to 13 million units for consoles. The Star Wars game sits third in Creutz’s ranking.
And he projected that
Activision Blizzard
’s (ATVI) Call of Duty Modern Warfare game will be the top-selling title, at about 24 million unit sales. Activision Blizzard stock was up 1.5% to $48.69 on Tuesday.
Creutz has Outperform ratings on both Take-Two and EA stock, with price targets of $131 and $104, respectively. For Activision Blizzard, he rates the stock at Market Perform with a $48 price target.
In May, Barron’s said Take-Two made some of highest quality games in the industry and suggested its shares may rally once investors get visibility on the timing of the next Grand Theft Auto game.
Write to Tae Kim at tae.kim@barrons.com
