Korea Investment & Securities lowered its target price from 300,000 won to 270,000 won on the 10th, saying it is concerned about sluggish advertising sales for Naver. However, the investment opinion 'buy' was maintained.

Naver's sales and operating profit in the fourth quarter of 2022 are expected to reach 2.19 trillion won and 339.6 billion won. The figure is up 14 percent and 3.3 percent from a year earlier, respectively. 

 

Korea Investment & Securities said, "The growth rate of advertising sales is slower than the previous forecast," adding, "The economic recession has greatly reduced advertising budgets for major advertisers, and the Itaewon disaster is also believed to have negatively affected the advertising market in the fourth quarter."

Advertisement sales estimates for this year have also been lowered. According to Korea Investment & Securities, Naver's advertising sales estimate for this year has decreased from 3.96 trillion won to 3.81 trillion won.

However, it is positive that Naver is managing operating expenses well. Korea Investment & Securities Co. lowered Naver's estimate of development and operation costs this year to 2.39 trillion won, down more than 100 billion won from the previous (2.52 trillion won). Marketing costs are also estimated at 1.43 trillion won from the previous 1.51 trillion won.

 

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