Bernstein SocGen Group adjusted its outlook on Konami Holdings Corp. (9766:JP) (OTC: KNMCY), increasing the price target to ¥16,500 from the previous ¥13,000. The firm maintained an Outperform rating on the stock, signaling continued confidence in the company's performance.
The revision in the price target comes on the heels of positive developments in Konami's gaming division. The company's new eFootball game has been received well, demonstrating smooth gameplay.
Additionally, Sensor Tower data has indicated a significant 30-40% increase in mobile billings compared to the previous year, with revenues from emerging markets showing a twofold increase year over year in the last quarter.
Konami has emphasized the potential for further market expansion and the likelihood of high margins from eFootball contributing to earnings surpassals.
The introduction of eBaseball MLB Pro Spirits is expected to grant Konami access to a substantially larger baseball market beyond Japan.
The firm's analysts have noted that the valuation gap between Konami and its competitor, Capcom, has largely narrowed. Despite this, the firm's projections for Konami's performance are still well above the consensus, suggesting that the company is on an upward trajectory. The positive assessment reflects the firm's belief in Konami's continued growth and success in the gaming industry.
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