Chinese chip stocks jump as Beijing reportedly warns against Nvidia’s H20
On Friday, Bernstein SocGen Group adjusted its stance on Konami Holdings Corp. (9766:JP) (OTC:KNMCY), downgrading the company’s stock rating from Outperform to Market Perform. The firm set a price target of JPY19,000.00 for the video game developer and publisher.
The downgrade was influenced by Konami’s latest guidance, which forecasts an operating profit of JPY106 billion, reflecting a modest year-on-year growth of approximately 4%. Despite this cautious outlook, Bernstein acknowledged that Konami exceeded its financial year ending March 2025 guidance by about 20%.
Bernstein analysts also recognized potential in Konami’s eFootball franchise, particularly with the upcoming 2026 World Cup expected to boost interest in the game. Moreover, the firm noted positive developments with single-title games, mentioning the scheduled release of MGS Delta on August 26 and the favorable reception of Silent Hill f.
However, the decision to downgrade Konami’s stock rating was driven by concerns over the company’s valuation and the anticipated pace of monetization growth. Bernstein pointed out that the high valuation multiples, specifically 27 times the fiscal year ending March 2027 estimated earnings, combined with a forecast for more moderate growth in monetization, suggest a period of consolidation for Konami’s shares.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.