UBS names Take-Two Interactive top US gaming pick, bullish on GTA VI launch and recurring revenue growth.

UBS has named Take-Two Interactive as its top pick in the US gaming sector, citing optimism around the upcoming Grand Theft Auto VI release and strong long-term monetization trends. The firm has a Buy rating with a 12-month price target of $330, implying about 35% upside. UBS believes fears over AI competition are overblown for Take-Two and highlights the company's shift to recurring consumer spending models, which have stabilized cash flow returns. The GTA VI launch is expected to be a major earnings catalyst, with UBS projecting $9 billion in fiscal 2027 bookings, including $2 billion from GTA VI sales. Investors will focus on Take-Two's fiscal 2027 guidance when results are reported on May 21.