Cautious Hold on Kadokawa Despite Strong Q3 Results and Elden Ring Success

Jefferies analyst Shunki Nakamura maintained a Hold rating on Kadokawa Corporation (9468 – Research Report) today and set a price target of Yen3,640.00.

Shunki Nakamura’s rating is based on a combination of factors influencing Kadokawa Corporation. The company announced strong third-quarter results for FY3/25, with an operating profit significantly surpassing market expectations, largely due to the success of the Elden Ring DLC. Despite this positive performance, the decision to maintain a Hold rating may reflect a cautious outlook on future sustainability of such growth or potential market volatility.
Additionally, while the target price was adjusted upward, it suggests a balanced view where the upside potential might be limited in comparison to the risks or uncertainties identified. The Hold rating could indicate that while the company is performing well currently, substantial long-term catalysts are required for a more bullish stance. Thus, the current financial metrics and market conditions justify a neutral position at this time.