[Weekly HOT Stocks] NCSoft, Entering a Correction...? "Q4 Rebound Potential↑"

The stock price fell to 783,000 won on the 20th

[Asia Economy Reporter Geum Bo-ryeong] NCSoft, which once had a target stock price in the 1.2 million KRW range, experienced a drop to the 700,000 KRW range within a week, but analysis suggests a high possibility of a rebound in the fourth quarter.

According to the Korea Exchange on the 23rd, NCSoft's closing price on the 21st was 823,000 KRW.

NCSoft's stock price has been considered a beneficiary of the novel coronavirus disease (COVID-19) and maintained a level between 800,000 and 900,000 KRW over the past two months. On the 6th of last month, it recorded a closing price of 995,000 KRW, approaching the 1 million KRW mark. Some securities firms even raised their target price to the 1.2 million KRW range.

However, NCSoft also entered a correction phase amid the market adjustment. The stock price fell from 872,000 KRW on the 14th to 834,000 KRW on the 18th, slightly rose to 841,000 KRW on the 19th, but dropped again to 783,000 KRW on the 20th.

Regarding this, Lee Min-ah, a researcher at Daishin Securities, analyzed, "After a correction period in the third quarter, a rebound is expected in the fourth quarter." In particular, Lineage 2M's revenue is expected to stabilize downward in the third quarter and rebound after the first anniversary update in the fourth quarter.

Despite the siege battle update in Lineage 2M, concerns grew as its Google Play revenue ranking remained third, behind Lineage M and "Baram-ui Nara" (The Kingdom of the Winds). Researcher Lee explained, "The first siege battle update was somewhat underwhelming. However, since the first siege battle involved capturing castles held by NPCs, it was difficult to consider it a full-fledged siege battle."

Next month, a relatively large-scale content update called "World Siege Battle" is scheduled. Additionally, the fourth quarter plans include the first anniversary update and events for Lineage 2M. Although Lineage 2M's revenue is expected to slightly decline from the second to the third quarter, a rebound is anticipated in the fourth quarter.

Researcher Lee stated, "Lineage 2M's daily revenue is projected to be 2.2 billion KRW in the second quarter, 1.8 billion KRW in the third quarter, and 2.2 billion KRW in the fourth quarter." He added, "With expectations for a new release event early in the fourth quarter, the start of pre-registration for 'Blade & Soul 2,' and the announcement of Lineage 2M's Taiwan launch schedule, stock price momentum could revive. We recommend using the recent price correction as a buying opportunity."

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