[Click eStock] "Kakao Target Price Lowered to 49,000 Won"

On the 8th, Kiwoom Securities lowered Kakao's target stock price from the previous 56,000 KRW to 49,000 KRW.

The target stock price calculation is the sum of the fair value of the headquarters and other divisions at 4.4 trillion KRW, the fair value of the commerce business division at 6 trillion KRW, the value of the Pay stake at 1.2 trillion KRW, the value of the Bank stake at 1.4 trillion KRW, the value of the Mobility stake at 3 trillion KRW, the value of the Entertainment stake at 4 trillion KRW, the value of the Kakao Piccoma stake at 1.2 trillion KRW, and the value of the Games stake at 600 billion KRW.

When calculating the commerce business division, the target PER was lowered from 22.5 times to 20 times considering the recent slowdown in growth, and the value of the paid content business division was also adjusted downward compared to before, reflecting the slowdown in global GMW growth. Kiwoom Securities judged that Kakao needs to attempt multiple new vertical services to maintain or improve its competitiveness. Through linking personalized data to the Talk platform, it is considered necessary to enhance targeting sophistication and strengthen the growth potential of the advertising business based on this.

It is expected that the third quarter revenue and operating profit will be 2.0532 trillion KRW and 137.3 billion KRW, respectively. At a time when the advertising market's elastic recovery is slow, due to the combined effects of seasonality such as the off-season, Talk Biz advertising revenue is projected to increase by 7.5% year-on-year, showing lower growth compared to the first half. Additionally, it was noted that the content and media business divisions need to recover their growth potential.

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