Piper Jaffray analyst Michael Olson says shares of Take-Two Interactive (TTWO) are down 10% year-today and have lagged video game peers Activision Blizzard (ATVI) and Electronic Arts (EA) due to concerns around "Fortnite" and disappointment with December quarter digital revenue. The shares should be bought at current levels as "Fortnite" risk is overblown, Olson tells investors in a research note. The analyst's conversations with major video game publishers suggest the potential impact from "Fortnite" has been "blown out of proportion." While the analyst does expect a measurable impact on Activision's near-term revenue due to overlapping titles, he sees "very minimal impact" on EA and Take-Two. Further, Olson believes Take Two has a "significant catalyst" in October with Red Dead Redemption 2. He views the stock's relative valuation as discounted and reiterates an Overweight rating on the shares with a $127 price target.

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