[Alpha Biz= Kim Jisun] SEOUL, October 27, 2025 — Shinhan Investment & Securities Co., Ltd. has maintained a neutral investment rating on Kakao Pay Corp., noting that market expectations fueled by stablecoin-related optimism appear excessive, leaving limited room for further stock upside. No target price was provided.


In its latest research report, Shinhan Investment projects Kakao Pay’s Q3 2025 revenue at ₩240 billion (US$173 million), up 28.9% year-on-year, and operating profit at ₩8.9 billion, marking a return to profitability from a loss a year earlier.


Analyst Im Hee-yeon attributed the improvement to robust core payment operations and a favorable business environment in the securities segment, adding that the company has “entered a phase of earnings stabilization.”


However, the report cautioned that Kakao Pay’s share price has already priced in much of the expected growth, stating:


“This year’s rally, driven by market enthusiasm surrounding stablecoin initiatives, appears excessive relative to fundamentals,” Im wrote. “The current valuation already reflects improvements in the company’s underlying performance.”


The analyst also pointed to continued supply-side pressure on Kakao Pay’s shares, noting that following Alipay’s exchangeable bond (EB) issuance, Goldman Sachs still holds or can borrow up to 8.63 million shares, representing 6.4% of total outstanding shares — a potential overhang that could trigger additional short selling.


Kakao Pay, the fintech arm of Kakao Corp., has seen strong trading volumes this year amid speculation over its potential integration of stablecoin technology and expansion into blockchain-based payments.

 

 

 

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