[Click eStock] "Kakao Games to Restructure Business Units... Target Price Up"

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On the 22nd, IBK Investment & Securities upgraded its investment rating on Kakao Games to 'Buy,' citing an upcoming restructuring. The target price was maintained at 25,000 KRW.

Lee Seung-hoon, a researcher at IBK Investment & Securities, stated, "Kakao Games has promised to reorganize business units that do not create synergy with games following a change in management."

He explained, "The metaverse and blockchain organizations will be downsized, and non-gaming subsidiaries are also subject to restructuring. By eliminating loss-making factors in VX and Senatechnology, the leverage effect from new releases is expected to be maximized starting in 2025."

He also analyzed that the excessive decline in Kakao Games' stock price places it in an undervalued range, which is favorable for buying. The researcher said, "It has entered an undervalued valuation range below a PBR of 1. Considering the value of Lionheart (55%) and XL Games (53%), which have potential corporate values in the trillion KRW range, as well as more than 10 other invested game developers, it is judged to be in an undervalued range."

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