Investing.com -- UBS upgraded Take-Two Interactive Software (ETR: SOWGn ) Inc (NASDAQ: TTWO ) to "Buy" from "Neutral," raising its price target to $230 from $175, driven by optimism in the demand for Grand Theft Auto VI.

A UBS survey indicated substantial purchase intent and pricing power for GTA VI, with nearly half of respondents expressing interest in buying the game. Over 50% of likely buyers suggested they would pay more than the industry-standard $70 price, bolstering expectations of a premium-tier mix.

UBS forecasts 30 million unit sales in GTA VI’s launch quarter and over 40 million in its first year, exceeding the launch performance of its predecessor, GTA V. Anticipated buzz from trailers and announcements in 2025 is expected to further drive sentiment and stock performance, UBS said.

Take-Two’s broader pipeline includes 22 immersive core titles planned between fiscal 2025 and 2027. UBS projects sustainable bookings of over $8 billion annually, with adjusted earnings per share surpassing $7 in fiscal 2026 and $9 in fiscal 2027.

While UBS slightly lowered fiscal 2026 gross margin estimates to 62% due to higher software development costs, the firm expects margins to return to historical levels as new titles launch.

Shares of Take-Two Interactive have gained nearly 30% year-to-date as investors anticipate GTA VI’s release, targeted for late 2025.