UPDATE: Stifel Nicolaus Initiates Take-Two Interactive with Buy on Multiple Big Events Ahead

In a report published Friday, Stifel Nicolaus analyst Drew Crum initiated coverage on Take-Two Interactive Software (NASDAQ: TTWO) with a Buy rating and $21.00 price target.

In the report, Stifel Nicolaus noted, “We are initiating coverage of Take-Two Interactive Software, Inc. (TTWO) with a Buy rating on the shares and a $21 target price. We see two catalysts including (1) the September 17 launch of Grand Theft Auto V (GTA V), one of the top-selling video game franchises in history which should drive record results for Take-Two's FY14; and (2) the next generation console cycle (the company over-indexes on Microsoft and Sony console systems). With this as a near-term backdrop, beyond GTA V, earnings visibility appears to be improving (based on management guidance), and accordingly we are taking a positive stance on the company's pipeline and see better performance versus the period that followed GTA IV: more franchises, a growing digital business, and a restructured MLB 2K agreement, are swing factors. At 6.8x our FY14 non-GAAP EPS estimate (versus 24.0x forward earning, on average, in front of GTA IV) or a 50% discount to the market, and a (growing) cash balance equivalent to one-third of the market cap, we view valuations as reasonable at these levels.”

Take-Two Interactive Software closed on Thursday at $15.98.