Take-Two Interactive Software (TTWO) fiscal Q1 results were stronger than expected, while management's commentary around GTA VI reinforced UBS' bullish view and its expectation that the company's fiscal 2027 bookings guidance will prove conservative.

The investment firm said in a Friday note that it expects Take-Two's fiscal 2027 bookings guidance of $8.0 billion to $8.2 billion to prove conservative and looks for more significant updates closer to GTA VI's launch.

Management said pre-orders for the game were "unprecedented and astonishing," although it did not update guidance.

UBS expects ongoing content releases, new platform launches and Take-Two's pipeline of 21 new core titles in fiscal 2028 to 2029 to support a new baseline for bookings, profits and free cash flow. It forecasts bookings of $8.5 billion in fiscal 2027 and $9.2 billion in fiscal 2028, versus $6.7 billion in fiscal 2026.

UBS has a buy rating on Take-Two Interactive with a $300 price target.

Shares of Take-Two Interactive Software were up 2.5% in Monday trading.

Price: 252.75, Change: +6.25, Percent Change: +2.54