11:02 AM EDT, 08/08/2025 (MT Newswires) -- Take-Two Interactive Software ( TTWO ) is well diversified across its intellectual property portfolio despite its "heavy reliance" on the Grand Theft Auto franchise, Wedbush Securities said in a Friday note.

The company's fiscal Q1 results surpassed expectations, driven by strong performance from mobile titles, live services, NBA 2K, and Grand Theft Auto, the analysts said. Adjusted earnings per share of $0.61 came in well above consensus, boosted in part by gross margin expansion.

For fiscal Q2, the company has an "exceptional lineup" of titles for release, while momentum in mobile and live services should allow Take-Two to "easily hit" its guidance range, according to the note.

Wedbush added that Take-Two has several levers to drive profits above estimates, including a higher price point for GTA VI, its integration into GTA Online, and "significant margin expansion" through its first-party web store.

Wedbush reiterated the company's stock rating at outperform and raised the price target to $275 from $269.

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