On Thursday, JP Morgan analyst Cory Carpenter highlighted its video game top picks, including Take-Two Interactive Software, Inc TTWO (Overweight rating with $225 price target), Roblox Corp RBLX (Overweight rating with $75 price target), Electronic Arts EA (Neutral rating) and Playstudios MYPS (Underweight rating).

Carpenter noted Take-Two Interactive as the top pick riding the Grand Theft Auto VI Wave, with improved NBA 2K & Zynga performance.

The analyst remarked that the strongest-ever game pipeline in 2025 (GTA VI (Fall), Borderlands 4, Mafia: The Old Country (Summer), and Civilization 7) followed years of heavy investment.

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Carpenter said GTA VI’s success likely drives estimates and multiples higher, with the potential for a higher unit price (>$70).

The analyst believes Zynga’s transition to AppLovin Corp’s APP MAX mediation platform could be an underappreciated tailwind.

He highlighted Color Block Jam’s early momentum and Empires & Puzzles’ stability in the mobile gaming segment.

According to the analyst, cost efficiency initiatives like Chartboost & Private Division divestitures and 5% downsizing in April 2024 should maximize leverage around core title releases.

For Electronic Arts, Carpenter highlighted FC trends, Battlefield launch timing, and Bookings’ return to growth.

For Roblox, the analyst anticipated Bookings growth of 20%+, DAUs after a fourth-quarter slowdown, and Ads/commerce ramping.

For Playstudios, Carpenter focused on Sweepstakes initiatives, the New Tetris title launch, and Core game stability.

Carpenter projected fiscal 2025 revenue growth of 20% for Roblox, 3% for Electronic Arts, and 46% for Take-Two Interactive. The analyst projected a 10% decline for PlayStudios in the fiscal year.

Carpenter projected a fiscal 2025 adjusted EBITDA margin of 20% for Roblox, 32% for Electronic Arts, 23% for Take-Two Interactive, and 19% for PlayStudios.

Price Actions: TTWO closed lower by 0.75% at $212.28 onThursday. RBLX down 1.42%, MYPS down 3.15%, and EA up 0.08%.

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