Ariel International Fund on Bandai Namco Holdings, Inc.
Thesis
Ariel thinks Bandai Namco is in the early stages of an earnings recovery that is not fully priced in. Toys, collectibles and trading cards are growing strongly, with the Gundam Card Game an important global driver. Improved repeat sales for existing games, a fuller release slate and live entertainment strengthen the second-half outlook. Its intellectual-property model supports multiple recurring monetization channels across games, merchandise, experiences and digital engagement.
“the recovery remains in its early stages”
Key risks
- Recovery in repeat sales of existing titles may stall
- New game and content releases may underperform expectations
- Current valuation may already reflect some of the earnings rebound