[Click eStock] "NCSoft, TL Performance Slumps... Target Price Lowered to 240,000 Won"

Kiwoom Securities announced on the 24th that it has lowered the target price for NCSoft from 340,000 KRW to 240,000 KRW. The investment rating was maintained as Buy.

Jingu Kim, a researcher at Kiwoom Securities, stated, "The new target price calculation is based on the 2024E controlling shareholder equity of 233.5 billion KRW, applying a price-to-earnings ratio (PER) of 22.5 times." He added, "Due to the recent poor domestic performance of Throne and Liberty (TL), expectations for this year's new releases remain at the level of three mobile titles, and considering that the resulting financial performance will be more limited compared to before, a neutral or higher target multiple was applied."

Kiwoom Securities estimated TL's sales for the fourth quarter of last year at 7.9 billion KRW and this year's sales at 47.4 billion KRW based on total revenue. This reflects the recent decline in domestic user response and global expectations.

Researcher Jingu Kim also said, "In the case of LLL, considering the need for some game quality adjustments such as impact feel, the initial quarter sales for the first quarter of this year and the cumulative sales over the next four years were adjusted to 2 million units, thereby reflecting a realistic target in the estimates."

Operating profit for the fourth quarter decreased by 51% compared to the previous quarter to 8.1 billion KRW due to increased marketing expenses centered on TL.

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