Take-Two shares rise after analyst upgrade

SAN FRANCISCO, Dec 10 (Reuters) - Take-Two Interactive Software Inc (TTWO.O) shares rose nearly 6 percent on Monday after an analyst upgraded the video game publisher in anticipation of its expected hit title "Grand Theft Auto IV" next year.

Pacific Crest Securities analyst Evan Wilson upgraded Take- Two shares to "outperform" and gave them a $24 price target, a premium of more than 40 percent over the stock's closing price on Friday.

"There are several catalysts lining up for Take-Two in the next five to six months," Wilson said. "Take-Two is one of the few companies that has a very significant game coming out ... investors will see it continue to do well on a relative basis."

Apart from the expected first-quarter release of "GTA 4," the latest in the series of wildly popular and controversial criminal action games, Take-Two shares should benefit from strong holiday performance and ongoing talk that the company could be taken over.

"There's lots of speculation that Take-Two would be sold to large media company," Wilson said, adding he had no knowledge that any deal was in the works. "But that speculation will put a bottom in the stock."

Such speculation picked up after the announcement earlier this month that French media and telecommunications giant Vivendi (VIV.PA) would take a controlling stake in Activision Inc (ATVI.O), the second-biggest U.S. game publisher, for nearly $9 billion.

The shares in New York-based Take-Two rose 97 cents, or 5.7 percent, to close at $18 on Nasdaq.

The shares have fallen more than 10 percent over the past year, with much of the damage coming after the company delayed the launch of "GTA 4" from its original holiday release date. (Reporting by Scott Hillis; Editing by Andre Grenon)