[Click eStock] "Krafton New Release Expectations... Target Price Up"

NH Investment & Securities raised the target price for Krafton to 250,000 KRW on the 8th, stating, "The stock rebounded due to the lowest valuation among game companies and solid third-quarter results. With the recent stock price increase, the price-to-earnings ratio (PER) has risen, and since major anticipated titles are concentrated in 2025, the upward momentum is expected to strengthen in the second half of next year rather than the first half." They also maintained a buy rating.

On the same day, researchers Ahn Jae-min and Kim Do-hee from NH Investment & Securities said, "We have raised earnings estimates for next year and beyond, reflecting the excitement for new releases unveiled at the G-Star Game Show."

The stock price momentum is expected to be fully reflected from the second half of next year. While the new releases 'Dark and Darker Mobile (Extraction RPG)' in the first half and 'Enjoy (Simulation)' in the second half will help endure the gap in new titles, the highly anticipated 'Project Black Budget (Extraction Shooter)' is scheduled for the end of next year, and 'The Next Subnautica (Adventure)' and 'Project Gold Rush (Action Adventure Sandbox)' are planned for the first half of 2025. Whether 'Hwapyungjeongyeong,' which shows a downward stabilization this year, will rebound is a checkpoint for the first half of next year. The first-quarter earnings, when Hwapyungjeongyeong's sales are concentrated, will be crucial.

Researcher Ahn stated, "We estimate Krafton's fourth-quarter sales to be 410.5 billion KRW, down 13.3% compared to the same period last year, and operating profit to be 112.5 billion KRW, down 18%. The e-sports events and supercar collaboration promotions concentrated in the third quarter will disappear, and entering the off-season will inevitably lead to a decline in sales." He added, "On the other hand, due to the recent stock price increase, the stock compensation cost, which was reversed by 19.8 billion KRW in the third quarter, is expected to increase to 15.1 billion KRW in the fourth quarter."

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