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Digital Arts falls sharply after domestic brokerage downgrades investment rating

Tue Jun 2, 2026 10:59 am JST Catalyst

Shares of Digital Arts Inc. <2326> plummeted on Tuesday, triggered by a severe downgrade from SBI Securities announced on Monday, June 1. The brokerage cut its investment rating to "Neutral" from "Buy" and drastically slashed its target price to 4,500 yen from 15,500 yen, sparking aggressive selling pressure.

According to SBI Securities, the downgrade reflects a shifting outlook surrounding Japan's GIGA School special demand and prolonged weakness in the corporate enterprise segment. Consequently, the firm lowered its earnings estimates for the fiscal year ending March 2027. It reduced its revenue forecast to 12.32 billion yen (above the company's 12.0 billion yen guidance) from 15.44 billion yen, and cut its operating profit estimate to 5.72 billion yen (company guidance: 5.40 billion yen) from 8.54 billion yen.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.

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