Take-Two Interactive Software, Inc. (NASDAQ:TTWO) reported mixed Q3 results, with EPS coming in at $1.32, beating the consensus estimate of $1.12. Net bookings of $866 million missed the estimates, with weaker performance in mobile RCS offsetting strong 10% growth from NBA 2K22. However, solid expense management during Q3 led operating income and Adjusted EPS to beat the Street estimates.

Analysts at Deutsche Bank provided their views on the company following the results, mentioning they remain positive on the company based on the following:

(1) Robust long-term growth outlook that the brokerage views as underappreciated.

(2) Potential value creation from the company's proposed Zynga acquisition.

(3) The recent wave of consolidation across the interactive entertainment industry highlights the value and scarcity of scaled video game content assets, like Take-Two.

The analysts lowered their price target on the company’s shares to $215 from $225, while reiterating their buy rating.