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[Alpha Biz= Paul Lee] NH Investment & Securities announced on April 3 that it has maintained its “Buy” rating on NAVER, while lowering its target price from KRW 380,000 to KRW 320,000.

Analyst Ahn Jae-min stated that NAVER’s utilization of artificial intelligence (AI) across its platform continues to expand, with applications in advertising, commerce, maps, and other services expected to enhance user convenience and increase engagement time.

However, he noted that concerns remain over NAVER’s ability to compete with global big tech firms such as Google, OpenAI, and Anthropic. Amid a broader decline in global software stocks, these competitive pressures are weighing on NAVER’s share price.

Ahn added that upcoming launches of new services—including a shopping Agent AI and an AI Tab—expected in the first half of the year, combined with NAVER’s proprietary local data, could gradually improve user perception of its AI capabilities.

For the first quarter, NAVER is projected to post revenue of KRW 3.18 trillion, up 14.2% year-on-year, and operating profit of KRW 562 billion, up 11.2%. The operating profit is expected to come in slightly below the market consensus of KRW 579.3 billion.

The company’s commerce segment is forecast to generate KRW 1.06 trillion in revenue, representing a 34.9% year-on-year increase, supported by a recovery in consumer demand, spillover effects from data leaks at Coupang, and strengthened membership and delivery services.

Despite solid revenue growth, profitability is expected to face pressure. Increased depreciation expenses from GPUs purchased last year, along with higher marketing costs for commerce (KRW 508.7 billion, up 18.2%), are projected to lower the operating margin to 17.7% on a quarterly basis.

 

 

 

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