CCOEF - Capcom: Primed To Win Long Term Through IP Development (Rating Upgrade)

2024-03-13 08:00:00 ET

Summary

• Capcom continues to generate strong growth, owing to the long-tailed nature of its game portfolio, who continues to captivate consumers.
• We expect Management’s focus to remain on global brand building, allowing for increased sales and engagement. The new Monster Hunter game and Street Fighter movie will be critical.
• Capcom’s team have shown an impressive track record of creating compelling games, differentiating itself from peers who are forced to regularly churn out games and invest heavily in technology.
• Capcom remains a market leader for financial performance, compounding its long-term returns.
• We do not believe Capcom is undervalued, but its ability to execute should not be understated when we see all the hallmarks of a long-term winner.

Introduction and thesis

Capcom Co., Ltd. ( CCOEF ) develops and sells video games, mobile games, and arcade games internationally. Its primary franchises are Resident Evil, Street Fighter, and Monster Hunter....

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