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Delivering Alpha

Hedge fund manager Greenberg sees 40% upside to gamemaker Take-Two

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Key Points
  • Samantha Greenberg is optimistic on Take-Two's upcoming games such as "Red Dead Redemption 2."
  • “Engagement with videogames continues to grow," she said. “While we’re bullish on the entire sector, we believe Take-Two has the biggest upside."
Samantha Greenberg, Chief Investment Officer, Margate Capital Management 
David A. Grogan | CNBC

Hedge fund manager Samantha Greenberg is a big believer in gamemaker Take-Two Interactive.

She said the company is her best stock idea at the Delivering Alpha Conference in New York on Wednesday.

“Engagement with videogames continues to grow," she said. “While we’re bullish on the entire sector, we believe Take-Two has the biggest upside."

Her base case price target for Take-Two is $176, representing nearly 40 percent upside from current levels. She said the company's upcoming games such as "Red Dead Redemption 2" will drive strong revenue growth in the coming years.

“Take-Two content pipeline is the largest in the company’s history," she said. Take-Two "trades at a discount to its peers, despite industry leading growth."

The investor is also optimistic trends and shifts in the videogame industry will also increase Take-Two's earnings per share and profit margins.

The "industry is shifting to a recurring revenue model," she said. “We expect streaming of games to become a commercial reality" in a few years.

Greenberg is the founder and chief investment officer of Margate Capital Management. Margate pursues a thematic, catalyst-driven fundamental long-short equity strategy focused on investments across the technology, internet and consumer sectors. The firm oversees $216 million in asset under management, according to its latest investment advisor filing.

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Samantha Greenberg's best idea at Delivering Alpha: Take-Two Interactive