Shunki Nakamura, an analyst from Jefferies, maintained the Hold rating on Kadokawa Corporation (9468 – Research Report). The associated price target was raised to Yen3,800.00.
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Shunki Nakamura has given his Hold rating due to a combination of factors related to Kadokawa Corporation’s strategic developments and market positioning. The announcement of new titles for the upcoming Switch 2, including ‘Elden Ring Tarnished Edition’ and ‘The Duskbloods,’ indicates a promising pipeline for FromSoftware, a subsidiary of Kadokawa. These releases are expected to enhance the company’s operational performance in the fiscal years 2026 and 2027, leading to an upward revision of operating profit forecasts.
Despite these positive developments, the decision to maintain a Hold rating suggests that while there is potential for growth, the current market valuation of Kadokawa’s stock may already reflect these future prospects. The increase in the price target to ¥3,800 acknowledges the improved outlook, but the Hold rating implies that the stock may not offer significant upside beyond this revised target in the near term. Therefore, investors are advised to maintain their current positions while monitoring the company’s execution of its pipeline strategy.