[Click eStock] "AfreecaTV, Untact Beneficiary Stock Expected in the Second Half"

Korea Investment & Securities Issues 'Buy' Investment Opinion and Target Price of 78,000 Won... Closing Price on 13th at 64,700 Won

[Asia Economy Reporter Kum Bo-ryeong] AfreecaTV has been analyzed as an untact beneficiary stock to watch in the second half of the year.

According to Korea Investment & Securities on the 14th, AfreecaTV's second-quarter earnings are estimated at 45.3 billion KRW in sales and 9.8 billion KRW in operating profit. These figures represent increases of 8.9% and 2.6% respectively compared to the previous year. Compared to the previous quarter, sales rose by 9.1% and operating profit by 21.7%.

AfreecaTV is recognized as a definitive untact beneficiary stock. Jeong Ho-yoon, a researcher at Korea Investment & Securities, stated, "Amid many efforts to find untact beneficiary stocks in the domestic stock market, AfreecaTV is one of the companies that should be most closely watched in this regard. The reduction in outdoor activities has positively impacted various content industries. AfreecaTV is also understood to have benefited positively from increased user viewing time, along with steady growth in platform sales."

The key issue is whether the advertising business, which has slowed down since the outbreak of COVID-19, can recover its growth potential. Researcher Jeong analyzed, "If the advertising market revives in the second half of the year and AfreecaTV's advertising revenue can recover to last year's level, the stock price in the second half is also expected to show a positive trend." Advertising revenue is expected to be 5.4 billion KRW, down 13% from the previous year due to the impact of COVID-19, but it is expected to increase by 28.8% compared to the previous quarter.

Korea Investment & Securities gave AfreecaTV a 'Buy' rating with a target price of 78,000 KRW. The target price was raised by about 8% from the previous 72,000 KRW. The closing price on the 13th was 64,700 KRW.

This content was produced with the assistance of AI translation services.