[Click eStock] "Krafton, Concerns of Peak Earnings Premature... Target Price Maintained"

Korea Investment & Securities evaluated on the 3rd that concerns about a peak out in Krafton's performance are premature. They maintained a 'Buy' investment rating and a target price of 400,000 KRW.

Jung Ho-yoon, a researcher at Korea Investment & Securities, explained, "Krafton reported strong results with cumulative sales up 52% and operating profit up 60% through the third quarter, but the stock price has undergone a significant correction mainly due to concerns about a performance peak out. This growth was entirely driven by PUBG's revenue increase, and the market's worry is that such growth may not continue going forward."

Researcher Jung further assessed that concerns about the performance are still premature. He stated, "When judging the possibility of a peak out, the most important factor is the average revenue per user (ARPU) per person, which remains low for both PC and mobile. Considering the stable traffic trends as well, performance growth is expected to continue next year." He added, "Based on next year's earnings forecast, the price-to-earnings ratio (PER) is 14.6 times, indicating low valuation pressure, and as time passes, it is highly likely that earnings estimates will be revised upward and the stock price will rise, similar to this year."

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