Here’s Why Shares of Take-Two Interactive are Up 12%

Take-Two Interactive (NASDAQ:TTWO) posterized earnings with huge upside sales surprises from video games NBA 2K11 and white hot Red Dead Redemption.

Analysts are in the process of catching up. Expect to see a bunch of price target revisions in circa $15.

However, the next installation of Take-Two’s top franchise Grand Theft Auto is delayed and further delays (something TTWO is known for) will negatively impact the stock.

It’s also worth noting that the video game sector has been in a rough patch lately as other leading companies including Activision Blizzard (NASDAQ:ATVI) and Electronic Arts (NASDAQ:ERTS) have also struggled in the recession. But the holiday season brings catalysts with Microsoft’s (NYSE:MSFT) new Xbox Kinect and Sony’s (NYSE:SNE) new Playstation Move.

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Disclosure: No positions.

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