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On Thursday, CyberAgent Inc. (4751:JP) (OTC: CYGIY) stock rating was upgraded from Neutral to Buy by analysts at Citi, who also increased the price target from JPY 1,000 to JPY 1,400. The upgrade reflects a positive outlook on the company’s media and intellectual property (IP) segment, as well as sustained growth in its internet advertisement segment. According to InvestingPro data, the company has demonstrated strong momentum with a 34.5% year-to-date return and maintains a healthy 9.1% revenue growth rate.
Citi analysts noted that CyberAgent is entering a phase where it can benefit from previous investments in its media & IP segment. This transition is expected to yield financial rewards for the company. Additionally, the internet advertisement segment of CyberAgent has demonstrated consistent growth, contributing to the firm’s optimistic stance.
While Citi’s forecasts for the game segment of CyberAgent remain cautious due to the uncertainty in the segment, they acknowledge the company’s strong development capabilities. The analysts suggest that there could be potential upside for the segment, depending on the performance of new titles that are released.
The revised price target of JPY 1,400 represents a significant increase from the previous target of JPY 1,000. Citi’s adjustment is based on updated earnings forecasts and their belief in the company’s potential for growth in key business areas.
The upgrade and new price target indicate Citi’s confidence in CyberAgent’s future performance and its ability to capitalize on its strategic investments. The company’s stock is expected to respond to this positive assessment from the financial institution.
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