Video game developer and publisher Capcom (CCOEF) wants to level up its business with a new strategy. The developer has revealed plans to reach more gamers by increasing the variety of games it offers. Obviously, it will continue to develop games for its popular series as that brings in a steady source of sales. However, Capcom is introducing a major change to help it expand its business.
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This has Capcom dedicating resources to reviving its dormant series. Investors saw this plan in action when Dragon’s Dogma 2 launched in March with over 3 million sales in less than two weeks, making it a major success for the studio. Adding to that is the company’s recent Onimusha Way of the Sword and Okami Sequel announcements. Both of these haven’t seen a mainline entry since 2006 when Sony’s (SONY) PlayStation 2 was dominating the console war.
Capcom has a massive library of game series to pull from for this plan. Others that could get new entries include Dino Crisis, Mega Man, Viewtiful Joe, Lost Planet, and many more.
What This Means for CCOEF Stock
Capcom’s current business strategy of releasing new games in established series while remaking and remastering older titles has done incredibly well. This has lifted CCOEF stock 81.97% higher over the last three years. That includes a 32.25% increase year-to-date for 2024.
All of this data shows that Capcom could be poised for further growth. One thing to note is that it will be a couple of years before investors see if this strategy pays off. Onimusha Way of the Sword won’t come out until 2026 and Okami Sequel doesn’t have a release window yet.
Is CCOEF Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Capcom is Strong Buy based on two Buy ratings over the last three months. With that comes an average price target of $26.47, a high of $27.61, and a low of $25.34. This represents a potential 23.69% upside for CCOEF shares.
