[Alpha Biz=(Chicago) Reporter Paul Lee] Mirae Asset Securities lowered its target stock price and investment opinion on NCsoft on the 24th, saying that last year's fourth-quarter performance falls short of expectations and that it is difficult to expect a clear improvement in its performance until the first half of this year.

In its report, Mirae Asset Securities predicted that NCsoft's fourth-quarter sales will fall 20 percent year-on-year to 439 billion won, and its operating profit will fall 82 percent to 8 billion won, falling below its market forecast (444 billion won in sales and 16 billion won in operating profit).

While it is positive that consecutive declines in quarterly earnings of Lineage 2M and W have ended, the company expects marketing costs following the launch of its new game "Throne and Liberty" in Korea last month to soar to 430 billion won, up 6 percent from the previous quarter.

Mirae Asset Securities said, "A dramatic rebound in TL sales is expected to be difficult," and predicted that the average daily sales combined in Korea and abroad will be only 250 million won this year.

Mirae Asset Securities lowered NCsoft's target stock price by 33% from 330,000 won to 220,000 won, reflecting its downward revised earnings forecast for this year, and its investment opinion fell from "buy" to "trading buy" (short-term purchase).

 

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