Kadokawa Corporation: Hold Rating Amid Publishing Challenges and Anime Growth Prospects

Jefferies analyst Shunki Nakamura maintained a Hold rating on Kadokawa Corporation (9468 – Research Report) today and set a price target of Yen3,790.00.

Shunki Nakamura has given his Hold rating due to a combination of factors impacting Kadokawa Corporation. The recent financial results highlighted challenges in the Publishing segment, where a significant return rate was observed, attributed to system issues and underperforming titles. Additionally, the absence of major anime intellectual properties in the fiscal year 2026 is a concern, although the company anticipates a 10% growth in sales and operating profit within its Anime division.
Furthermore, the ongoing costs associated with stock options for FromSoftware are expected to continue, albeit with a gradual reduction over time. These elements contributed to the decision to lower the price target to ¥3,790. Despite some growth prospects in the Anime sector, the overall mixed outlook across different segments justifies the Hold rating.