Bernstein SocGen Group Increases Price Target for Konami Holdings Corp. (9766:JP) - Positive Outlook for Gaming Division
Bernstein SocGen Group has adjusted its outlook on Konami Holdings Corp. (9766:JP) (OTC: KNMCY), increasing the price target to ¥16,500 from ¥13,000. The firm has maintained an Outperform rating on the stock, showcasing confidence in the company's performance.
The increase in the price target is driven by positive developments in Konami's gaming division. The launch of the new eFootball game has been well-received, with smooth gameplay being a standout feature. Sensor Tower data has also revealed a significant 30-40% increase in mobile billings compared to the previous year, with revenues from emerging markets experiencing a twofold increase year over year in the last quarter.
Konami is optimistic about further market expansion and the potential for high margins from eFootball contributing to earnings growth. The recent introduction of eBaseball MLB Pro Spirits is expected to open up a larger baseball market for Konami beyond Japan.
Analysts at the firm have observed that the valuation gap between Konami and its competitor, Capcom, has narrowed. Despite this, the firm's projections for Konami's performance remain optimistic, indicating a positive trajectory for the company. This positive assessment underscores the belief in Konami's continued growth and success in the gaming industry.
In conclusion, the revised outlook from Bernstein SocGen Group suggests bullish sentiment towards Konami Holdings Corp., especially in the gaming sector. Investors may want to take note of these developments and consider the potential for growth in Konami's stock value based on the firm's positive assessment.
Remember, investing in stocks involves risks and it's important to conduct thorough research or consult with a financial advisor before making any investment decisions.