[Click eStock] "Pearl Abyss, Increased Volatility Due to New Release Delay... Target Price Down"

Target Price Revised Downward by 19.2% Compared to Previous Estimate

On the 24th, KB Securities downgraded the target price of Pearl Abyss from 52,000 KRW to 42,000 KRW, anticipating increased volatility due to delays in the release of new titles. The investment rating was maintained as 'Buy.'

Lee Seonhwa, a researcher at KB Securities, explained, "The intellectual property (IP) of 'Black Desert' is aging rapidly, and with the delay in the release of the highly anticipated 'Red Desert,' along with increased uncertainty regarding the new costs and release schedule for the next title 'Dokkaebi,' we have lowered the operating profit estimates for 2025 and 2026 by 19.7% and 17.2%, respectively. This is the reason for the target price downgrade."

Pearl Abyss unveiled a new trailer for Red Desert at North America's largest game awards ceremony, The Game Awards (TGA), on the 13th, announcing a release date at the end of 2025. The researcher noted, "This is a further delay compared to the initially expected release in Q3 next year, and the contribution of Red Desert's performance is expected to become visible in 2026 rather than 2025. The release date announced by Pearl Abyss for Red Desert causes a steep downward revision of next year's estimates and also affects the release date of the next title, Dokkaebi, making a downward revision of the 2026 estimates inevitable." He added, "Although the PC version of Black Desert officially launched in China in October, Black Desert Mobile is scheduled to end its service in China starting January next year, so until Red Desert is released at the end of 2025, Pearl Abyss lacks momentum from new titles."

Currently, the stock price is undervalued, but there are concerns about increased volatility due to delays in new releases. The researcher said, "The current stock price level corresponds to a 12-month forward price-to-earnings ratio (PER) of 17.8 times, indicating undervaluation appeal. However, it is a period requiring long-term anticipation until the new release event, which could act as a trigger for the stock price, and the existence of factors such as announcements confirming release dates that could increase stock price volatility is a risk factor."

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