 |
NeoWiz P's Falsehood. (Photo: NeoWiz) |
[Alpha Biz= Kim Sangjin] Shinhan Investment Corp. downgraded its investment rating for NeoWiz from "Buy" to "Trading Buy" on January 24, citing a loss of short-term expectations due to delays in new game releases.
The target price was also lowered from 28,000 KRW to 20,000 KRW.
In its report, Shinhan Investment pointed out that following the performance of P's Falsehood, a gap emerged due to the cancellation of new game releases. While agreeing with NeoWiz’s investment and development direction for securing major intellectual properties (IPs), the firm noted that there is a lack of short-term appeal and expectations.
Shinhan Investment highlighted that investments in Blank and Jakazane Studios, as well as publishing contracts, are positive steps toward securing quality IPs, but it could take 2-3 years or more for results to become visible. The firm added that interest in the company would rise once new projects are unveiled.
For the fourth-quarter results of the previous year, Shinhan Investment forecasted operating revenue of 91.6 billion KRW and operating profit of 4.5 billion KRW, which is below the consensus estimate of 5.9 billion KRW.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
