Capcom: Increased prospects for profit growth boost investment appeal

研报英文原文证据摘录

Capcom: Increased prospects for profit growth boost investment appeal

Global Markets Research

16 June 2026Capcom

9697.T 9697 JP / EQUITY: JAPAN GAMES & AMUSEMENT

RatingIncreased prospects for profit growth boost

Up from Neutral Buyinvestment appeal

Target price

Reduced from 3,700 JPY 3,600We raise rating from Neutral to Buy in view of rising expectations for profit growth

and increasing undervaluation

We fine-tune our 27/3 profit forecasts for Capcom in view of new title announcements and Closing price 15 June 2026 JPY 2,796.0subsequent research but raise our rating from Neutral to Buy because we see increased

prospects for profit growth and the decline in the share price has increased Implied upside +28.8%undervaluation. The share price has been sluggish despite the reassurance provided by

26/3 results and new title announcements (Figure1). Share prices across the sector have

been performing poorly over the past year as investors factor in uncertainty over game

pipelines and the risk of fiercer competition caused by generative AI. Funds appear to Relative performance chart

have been flowing out to AI- and semiconductor-related stocks over the past few months,

and the stock looks to have come off worse because it was previously highly favored

within the sector owing to high growth expectations. However, we think improvements to

the pipeline outlook have increased prospects for profit growth, and we also look to profit

growth in 27/3 Q1, and think now is the time to reassess the stock. We trim our target

price to reflect the decline in the benchmark but raise our rating to Buy as we think the

decline in the share price has increased its investment appeal.

Lineup announcements have boosted prospects for profit growth in 27/3