Sega Sammy Holdings (6460) Initiate at Buy: Revving IPs, Ramping Earnings, Reaping Rewards

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Sega Sammy Holdings (6460) Initiate at Buy: Revving IPs, Ramping Earnings, Reaping Rewards

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Sega Sammy Holdings (6460)

Initiate at Buy: Revving IPs, Ramping

Earnings, Reaping Rewards

Initiating Coverage: BUY | PO: 3,300 JPY | Price: 2,431 JPY

Initiate coverage at Buy with ¥3,300 PO (35.7% upside) 23 July 2026

We initiate coverage of Sega Sammy Holdings, an IP powerhouse that owns 'Sonic the Equity

Hedgehog', with a Buy rating and a PO of ¥3,300. We derive our PO using a P/E-based

SOTP valuation. For the Entertainment Content business, we apply a P/E multiple of Shinji Masuda >> Research Analyst

22.9x, representing a 10% premium to the average FY3/27E P/E of our game & content BofAS Japan

coverage cluster. We apply this premium because we forecast OP CAGR of 12% over +81shinji.masuda@bofa.com3 6225 7992

FY3/27-FY3/30, above the cluster average of approximately 9%. Beyond ‘Sonic the Yoshitaka Nagao >>

Hedgehog’, the company owns IPs such as the school-life RPG ‘Persona’ and ‘Angry Research Analyst

Birds’, and their IP monetization remains at an early stage. We apply 6.5x P/E to the BofASyoshitaka.nagao@bofa.comJapan

pachinko and pachislot business, and 20.5x P/E to others, including corporate costs. Yusuke Noguchi >>

Research Analyst

A three-part story of growth, earnings, and returns BofASyusuke.noguchi@bofa.comJapan

Our Buy thesis rests on three pillars: (1) the unprecedented pipeline in FY3/27-FY3/28

reflects a structural improvement in pipeline creation capability, supporting sustained

pipeline delivery, (2) accelerating growth in licensing revenue and repeat sales to drive

Stock Datamedium- to long-term margin expansion, and (3) FCF recovery to increase the likelihood

of stronger shareholder returns under the next MTP.