Benzinga | Sep 17, 2021 07:34AM EDT

BMO Capital Downgrades Take-Two Interactive Software - Read Why

* BMO Capital analyst Gerrick Johnson downgraded Take-Two Interactive Software Inc (NASDAQ:TTWO) to Market Perform from Outperform with a price target of $150, down from $225, implying a downside of 1.24%.

* Johnson is less confident in his previously high on the Street earnings estimates after a series of video game release delays, which he calls a "disconcerting trend."

* Johnson expects Take-Two's valuation multiple to remain under pressure, owning to "exogenous events" like new Chinese gaming regulations and closer scrutiny of video games companies, including content in Grand Theft Auto.

* Further, the scrutiny comes amid a heightened environmental, social, and governance focus among institutional investors.

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* Also Read: NetEase Stock Plummets As China Limits Gaming Time For Minors

* Price Action: TTWO shares traded lower by 1.24% at $150.00 in the premarket session on the last check Friday.