[Click eStock] "NAVER, ClovaX Growth Potential... Target Price Up"

On the 25th, Samsung Securities raised the target price for Naver (NAVER) from 280,000 KRW to 310,000 KRW.

Naver unveiled its proprietary artificial intelligence (AI) model, 'HyperCLOVA X,' along with its service lineup the previous day. Samsung Securities expects this AI service to strengthen Naver-centered commerce and content ecosystems by linking with Naver's search, shopping, and other services.

Additionally, Naver's upcoming 'ConnectX' service is designed to help general enterprises improve work productivity by utilizing corporate data. This represents an expansion of Naver's business scope from its existing B2C-focused service structure to B2B, raising expectations that it will become a mid- to long-term growth driver.

Odonghwan, a researcher at Samsung Securities, stated, "It is difficult to quantify how much revenue increase the application of generative AI technology will bring to existing services such as search, shopping, and places," but added, "In the long term, strengthening Naver's online and offline commerce ecosystem can translate into revenue growth, and entering the B2B IT solution market can also bring new growth. Therefore, the visibility of generative AI-related technologies and services is considered a factor for valuation increase." He continued, "Past profit growth is expected to be driven by monetization of data-based commerce, advertising revenue growth due to recovery in the domestic consumption economy, and profitability improvement in the global business division."

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