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Bandai Namco Holdings: Strong Current Performance Amid Uncertain Future Stability Justifies Hold Rating

Bandai Namco Holdings: Strong Current Performance Amid Uncertain Future Stability Justifies Hold Rating

Analyst Robin Zhu from Bernstein maintained a Hold rating on BANDAI NAMCO Holdings (NCBDFResearch Report) and increased the price target to Yen4,250.00 from Yen3,500.00.

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Robin Zhu has given his Hold rating due to a combination of factors including Bandai Namco Holdings’ recent financial results and future prospects. The company reported a strong performance in the third quarter, surpassing previous expectations with significant revenue and profit growth, particularly driven by successful sales in their Digital Entertainment segment. However, despite this impressive performance, there are concerns regarding the sustainability of these results in the coming years.
While the new Medium Term Plan has set ambitious targets that exceed current market expectations, potential risks are associated with maintaining such growth, especially given uncertainties surrounding key partnerships and in-house game development projects. Additionally, the possibility of a decline in operating profit in the fiscal year 2026 adds to the cautious outlook. These mixed signals, characterized by strong current performance but uncertain future stability, contribute to the decision to maintain a Hold rating for Bandai Namco Holdings.

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