e.l.f. Beauty stock plummets 20% as revenue and guidance fall short of expectations
Investing.com - UBS has downgraded CapCom Co Ltd. (9697:JP) (OTC:CCOEY) from Buy to Neutral, while lowering its price target to JPY4,100.00 from JPY4,930.00.
The downgrade comes as UBS analyst Yijia Zhai expressed concerns about challenges to the foundation of CapCom’s 10% operating profit growth commitment, specifically citing its repeat sales strategy.
According to UBS, CapCom’s strategy of increasing catalogue shipments faces headwinds due to an already high penetration rate in the market.
The firm also pointed to weaker-than-expected repeat sales from Monster Hunter Wilds (MHW) in fiscal year 2026, which UBS believes is putting downward pressure on the potential expansion pack release in fiscal year 2027.
UBS warned that a de-rating of CapCom stock could occur if the company can no longer maintain its 10% operating profit growth or if the sustainability of this growth target comes into question.
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