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[Alpha Biz=(Chicago) Reporter Paul Lee] Kiwoom Securities raised its target price of Kakao Games to 30,000 won from 28,000 won. The investment opinion has maintained an 'out-of-form'.
Kiwoom Securities said, "If Kakao Games accumulates sincere communication for users as a competitive game in the console segment that has formed the most important pillar of the global game market, financial performance and corporate value upside triggers can be created based on this."
Kiwoom Securities went on to say, "If positive user feedback on the Hack&Slash online game Path of Exile 2 beta test (CBT) scheduled for June this year is formed, it will serve as an additional upside element to corporate value."
Kiwoom Securities expects the average daily sales estimate of Odin, a major game of Kakao Games, to rise from 850 million won last year to 870 million won this year. The average daily sales estimate of Archiage War and Ares is expected to change from 500 million won to 330 million won and 360 million won to 540 million won, respectively.
"We expect Kakao Games' consolidated operating profit in the fourth quarter of last year to be KRW 12.9 billion, down 43% from the previous quarter," Kiwoom Securities said. "We estimate that mobile game sales will fall by 8% compared to the previous quarter due to a drop in sales of major lineups."
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
