Cautious Hold on DeNA Co Amid Gaming Segment Decline and Conservative Guidance

Analyst Shunki Nakamura from Jefferies maintained a Hold rating on DeNA Co and keeping the price target at Yen2,570.00.

Shunki Nakamura has given his Hold rating due to a combination of factors impacting DeNA Co’s performance. The company’s first-quarter results showed a significant decline in their gaming segment, particularly with the Pokémon TCG Pocket, which did not meet investor expectations. This decline overshadowed minor successes in other areas, which were not substantial enough to offset the overall negative impact.
Additionally, the company’s guidance appears to be overly conservative, suggesting limited growth potential in the near term. The anticipated upside risks that could have improved the outlook did not come to fruition, reinforcing the decision to maintain a Hold rating. These elements combined indicate a cautious approach, as the company navigates through its current challenges.