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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] Some brokerages have raised their target prices for NCSoft.
On the 8th, NH Investment & Securities maintained its "Buy" rating for NCSoft, raising the target price from 220,000 KRW to 280,000 KRW. The firm noted that the global service for 'TL' is maintaining around 300,000 concurrent users on Steam, indicating a strong initial performance. They believe that the worst phase for stock prices and earnings is somewhat behind and expect a turnaround starting in the fourth quarter, driven by the launch of new titles through next year, beginning with 'TL' global.
Analyst Ahn Jae-min from NH Investment & Securities stated, “Even if we assume that the number of concurrent users stabilizes at around 200,000 and the Average Revenue Per Paying User (ARPPU) is 50 USD, we expect royalty revenues to exceed 5 billion KRW per month.” He added, “We will focus on the recovery expected after the fourth quarter rather than the third-quarter results.”
Hyundai Motor Securities also raised NCSoft's target price from 230,000 KRW to 260,000 KRW, expecting a recovery in the fourth quarter despite underwhelming third-quarter results.
Analyst Kim Hyun-yong from Hyundai Motor Securities commented, “At this point, we anticipate total sales of 80 to 100 billion KRW in the fourth quarter and plan to recognize a portion of total sales as net sales (royalties). We expect steep growth due to the impact of new titles next year.”
However, on the previous day, Korea Investment & Securities maintained a "Neutral" rating, noting that while there is short-term momentum, a conservative outlook remains necessary. They emphasized the need to confirm changes in the development phases of major projects.
Meanwhile, on the same day, NCSoft’s stock recorded a decline of around 2%. It had shown a bullish trend over the last three trading days, including a 7.42% increase on the previous day.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
