NH Investment & Securities has maintained its ＂Buy＂ rating on Kakao, but it has revised down the target price from the previous 69,000 KRW to 65,000 KRW.

NH Investment & Securities has maintained its "Buy" rating on Kakao, but it has revised down the target price from the previous 69,000 KRW to 65,000 KRW.: COMPANY / Reporter Kim SangJin / 2024-06-05 08:09:19

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[Alpha Biz= Reporter Kim Sangjin] NH Investment & Securities has assessed that visible performance is needed for Kakao on June 5th. They anticipate a recovery trend in this year's performance. While maintaining a "Buy" rating, they have revised down the target price from the previous 69,000 KRW to 65,000 KRW. As of the closing price on June 4th, Kakao's current stock price stands at 44,600 KRW.

In their report released on the same day, NH Investment & Securities explained, "We have revised down the target price for Kakao to 65,000 KRW. Although there were no adjustments to earnings estimates, we have reflected the decline in the share prices of major subsidiaries such as Kakao Bank, Kakao Pay, Kakao Games, and SM Entertainment, and the change in competitive conditions, resulting in a decline in the corporate value of Kakao Entertainment."

Furthermore, NH Investment & Securities stated, "In a situation where it is increasingly difficult for the growth cycle of subsidiaries to continue through investment attraction, growth, and initial public offerings (IPOs), Kakao has yet to demonstrate new growth strategies or changing dynamics."