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DeNA Co: Hold Rating Amid Declining MAU and Revenue Forecasts, Awaiting 2025 Update

DeNA Co: Hold Rating Amid Declining MAU and Revenue Forecasts, Awaiting 2025 Update

Shunki Nakamura, an analyst from Jefferies, maintained the Hold rating on DeNA Co. The associated price target was lowered to Yen2,070.00.

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Shunki Nakamura’s rating is based on several factors influencing DeNA Co’s current market position. A significant decline in monthly active users (MAU) for their PokéPoké game has led to a downward revision in revenue forecasts, with expectations of further revenue decline in the upcoming quarter. The potential for recovery is largely dependent on a planned update in 2025, which introduces uncertainty in the short term.
Despite these challenges, there have been improvements in live-streaming margins due to reduced television advertising expenditures, and the sports segment has shown growth even with a reduced number of games. Nakamura maintains a Hold rating, acknowledging the potential upside if the update successfully re-engages users, while also considering the downside risks of accelerated user attrition that could lead the stock price to fall to approximately ¥1,600.

In another report released on August 9, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a Yen2,474.00 price target.

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