Shunki Nakamura, an analyst from Jefferies, maintained the Buy rating on Toei Animation Co., Ltd. (4816 – Research Report). The associated price target was raised to Yen4,370.00.
Shunki Nakamura’s rating is based on several key factors that suggest an optimistic future for Toei Animation Co., Ltd. Despite the recent underperformance in the film business due to high production costs associated with Dragon Ball DAIMA, there are signs of a positive turnaround. The anticipated reduction in production costs as the DAIMA project concludes by the end of February is expected to lead to a recovery in operating margins in the fourth quarter.
Additionally, the company is poised to benefit from increased overseas sales driven by favorable exchange rates, as well as additional licensing revenue from Dragon Ball Sparking Zero. These factors contribute to a raised forecast and price target of ¥4,370, reinforcing the Buy recommendation.