[Alpha Biz= Kim Sangjin] SK Securities reported today that Naver is accelerating its growth, driven by new AI-powered services. The firm maintained its "Buy" rating and a target price of 270,000 KRW.

According to SK Securities, Naver's Q4 2024 revenue rose 9.1% year-on-year to 2.77 trillion KRW, while operating profit increased by 32.4% to 536.7 billion KRW. The operating profit is expected to slightly exceed market forecasts.

"Despite challenging market conditions, the search platform segment is anticipated to grow by 10.6%, supported by the improved targeting of feed ads, which demonstrated high efficiency," the firm explained.

Additionally, transaction volume increased despite weak consumer sentiment, driven by improved delivery quality and a rise in guaranteed delivery usage.

AI integration is progressing across Naver's core businesses. Analyst Nam noted, "In October 2024, Naver launched the beta version of Naver Plus Store, an AI-based hyper-personalized shopping service. This is expected to enhance the collection and analysis of shopping data."

SK Securities added, "Although Naver's stock price has recently undergone a short-term correction, its AI-driven new services are outperforming market growth rates. Once the revenue efficiency of these services is confirmed, the stock price is expected to rebound rapidly."

 

 

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