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Nexon Games |
[Alpha Biz= Reporter Kim Sangjin] Nexon Games, a subsidiary of Nexon, has experienced a significant stock price surge, defying the broader KOSDAQ market downturn. Over the past month, the company's stock has skyrocketed by more than 50%, while the KOSDAQ index has declined by 5.21%.
According to the Korea Exchange on the 23rd, the substantial increase in Nexon Games' stock price is largely attributed to the global success of its newly released game, The First Descendant. The game, launched earlier this month, has been a major driver behind the stock's impressive performance.
Institutional investors have notably contributed to this surge. In the last month, they have purchased approximately 41.3 billion won worth of Nexon Games shares, making it the third most purchased stock among KOSDAQ-listed companies.
The First Descendant, developed by Nexon Games and serviced on PC and console platforms by Nexon, has attracted significant attention from both gamers and investors. Since its official release on the 2nd of this month, the game has achieved a peak concurrent user count of 239,000 on the global PC gaming platform, Steam.
In response to the game’s success, securities firms have either initiated coverage or raised target prices for Nexon Games. Kyobo Securities has set a target price of 25,500 won, noting that The First Descendant is estimated to generate $51.3 million in sales within three weeks of its launch. The firm predicts a substantial increase in overseas revenue due to the game's high user base in Western countries.
Additionally, Samsung Securities has adjusted its target price to 25,000 won. Analysts from Samsung Securities highlight that the stock’s performance is closely tied to the game's traffic and ranking. While acknowledging potential short-term volatility, they view the stock as undervalued from a long-term perspective. Previously, Nexon Games was ranked first among small and mid-sized stocks in Samsung Securities' qualitative and quantitative game industry evaluation.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
